What Is An Accord Agreement
The satisfaction of the contract fulfills both the original contract and the contract. However, if the agreement is not respected, the uninjured party may sue either under the original unloaded contract or for breach of the agreement (but it is clear that the non-infringing party cannot, under both agreements, claim one – the plaintiff must choose one). Another example would be that a lender agrees to borrow $100,000 at an interest rate of 5.0% for 30 years, and the loan documents are all established for a loan at an interest rate of 6.0%. If the lender agrees to reduce the purchase costs by an additional $1,000 and borrowers agree, there has been convergence and satisfaction. If borrowers later complain of a breach of contract, the transaction (offer and acceptance of the USD 1000) is a match and satisfaction and constitutes a valid defense of the borrower`s action. And of course, the ubiquitous “full payment” written on partial payment cheques is a permanent source of litigation, as creditors and debtors argue over whether there has been agreement and satisfaction. The law of the state concerned regulates these issues (often the UCC, if between traders) and the creditor or wise debtor will learn the special law before such a cheque is issued or cashed. Compliance and satisfaction is an approach to contract law regarding the acquisition of a duty of guilty. This is one of the methods by which contracting parties can terminate their contract. Unlocking is complemented by the transfer of valuable counterparties that must not be the actual compliance of the commitment itself.  The agreement is the agreement to implement the commitment and satisfaction is the legal “reflection” that binds the parties to the agreement.
A valid agreement does not alleviate the previous treaty; on the contrary, it suspends the right to apply it according to the terms of the contract, in which the satisfaction or execution of the contract will relieve the two contracts (the original and the agreement). If the creditor does not comply with the agreement, the debtor can invoke the existence of the agreement to bring legal action.