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...
