Play video

Accord and Satisfaction Using a Negotiable Instrument

Learn about special rules that apply if a party tenders a negotiable instrument in full satisfaction of a claim.

Transcript

Generally speaking, accord and satisfaction is a legal concept whereby parties agree to settle a debt or obligation through the acceptance of substitute performance or a different form of payment. In certain circumstances, Article 3 allows negotiable instruments to be used to achieve accord and satisfaction.

I. Accord and Satisfaction

A negotiable instrument can be used to achieve accord and satisfaction if a person against whom a claim is asserted tenders, in good faith, an instrument to the...

The field below filters the lessons in this course as you type. The number of matching lessons is announced as you type.

Lessons

    • 1. Welcome
    • Welcome to Payment Systems
    2. Negotiability
    • Introduction to Negotiable Instruments
    • Negotiability Requirements I
    • Negotiability Requirements II
    • Rule against Additional Terms
    3. Key Terms in Article 3
    • Key Terms I
    • Key Terms II
    • Becoming a Holder
    • Negotiation
    • Indorsement
    4. Enforcement of Negotiable Instruments
    • Holder in Due Course: Value and Good Faith
    • Holder in Due Course: Without Notice
    • Close-Connectedness Doctrine and Shelter Rule
    • Defenses against Enforcement
    5. Liability on Negotiable Instruments
    • Obligations of the Parties
    • Instruments Taken for an Obligation
    • Accord and Satisfaction Using a Negotiable Instrument
    • Enforcement of Lost, Stolen, or Destroyed Instruments
    • Warranty Liability
    6. Dishonor, Payment, and Discharge
    • Dishonor of Negotiable Instruments
    • Payment of Negotiable Instruments
    • Discharge of Liability
    7. Misconduct and Mistake
    • Unauthorized Signatures and Alterations
    • The Negligence Rule
    • Imposters and Fictitious or Unintended Payees
    • Conversion of a Negotiable Instrument
    8. Bank Deposits and Collections
    • Introduction to Article 4
    • Collection: Depositary and Collecting Banks
    • Collection: Payor Banks
    • Payor Bank’s Relationship to Its Customers