Monday, June 4, 2007

Contracts-Accord & Satisfaction

An accord is an agreement to accept performance different from the one owed. Satisfaction = performance of the accord. Note that an accord does NOT extinguish the underlying obligation and if the accord is not satisfied, the obligee can sue on either the accord or the underlying obligation.

A compromise agreement, on the other hand, extinguishes the old contract and substitutes the new agreement in its place.

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