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Settlement of Disputed Account

Parties may agree to a different performance of a contract This is called an accord. When the accord is performed, this is called an accord and satisfaction. The original obligation is discharged. In order for there to be an accord and satisfaction, there must be a bona fide dispute; an agreement to settle the dispute; and the performance of the agreement. The parties might settle for less than the amount called for under the contract.
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Disputed Accounted Settlement

Settlement Agreement made on the _________________ (date), between _______________________ (Name of Debtor), a corporation organized and existing under the laws of the state of __________________, with its principal office located at ______________________________________________________________________ (street address, city, state, zip code), referred to herein as Debtor, and _________________________ (Name of Creditor), a corporation organized and existing under the laws of the state of _________________, with its principal office located at _____________________________________________________________ ______________ (street address, city, state, zip code), referred to herein as Creditor.

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