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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.


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...