Satisfaction in United Kingdom

Definition of Accord And Satisfaction

In accordance with the work A Dictionary of Law, this is a description of Accord And Satisfaction : The purchase by one party to a contract of a release from his obligations under it when the other party has already performed his side of the bargain. A release of this one-sided nature constitutes a unilateral discharge of the contract; unless granted by deed, it can at common law be effected only by purchase, i.e. by a fresh agreement (accord) for which new consideration (satisfaction) is given. If, for example, A is due to pay £1000 on a particular date to B for contractual services rendered, B might agree to accept £900 paid on an earlier date, the earlier payment constituting satisfaction.

Compare bilateral discharge.

See also (promissory) estoppel.

Definition of Accord And Satisfaction

Where a party agrees to obligations under a contract to be changed and replaced by new ones.