Dictionary of Banking Terms: accord and satisfaction
accord and satisfaction
legal term for payment in full toward discharge of an obligation; the satisfactory completion of an agreement and acceptance of payment. When a new contract is accepted in place of an expiring one, it is a novation.
Dictionary of Business Terms: accord and satisfaction
accord and satisfaction
payment of money or other valuable consideration (usually less than the amount owed) in exchange for extinguishment of a debt. There must be an express or implied agreement that accepting the smaller sum discharges the obligation to pay the larger sum.
