accord and satisfaction.An agreement to substitute for an existing debt some alternative form
of discharging that debt, coupled with the actual discharge of the debt by the substituted
performance. • The new agreement is called the accord, and the discharge is called the satisfaction.
Cf. COMPROMISE; NOVATION; SETTLEMENT(2), (3). [Cases: Accord and Satisfaction
1.C.J.S. Accord and Satisfaction §§ 2–17, 25–33.]
“ ‘Accord and satisfaction’ means an agreement between the parties that something shall be
given to, or done for, the person who has the right of action, in satisfaction of the cause of action.
There must be not only agreement (‘accord’) but also consideration (‘satisfaction’). Such an
arrangement is really one of substituted performance.” 1 E.W. Chance, Principles of Mercantile
Law 101 (P.W. French ed., 13th ed. 1950). [Blacks Law 8th]