dsclaw wrote:So I have gone through almost every MBE subject again read it over and I seem to have confused myself about ACCORD and Satisfactions. Can someone explain to me what makes it different than a modification? OR is it a specific type of modification?
Accord and satisfaction is a new contract supported by new consideration. The accord is the agreement; the satisfaction is the performance.
Jim cuts Ann's lawn. He says she owes him $100 for it; she says she only owes $50 for it. It's a disputed amount. Tired of arguing about it, the two of them agree that Ann will pay only $50 if she also agrees to cut Jim's hair. Ann goes to Jim's house, cuts his hair and pays him $50.
The agreement is an accord, because there was new consideration - Ann is cutting Jim's hair, and Jim is accepting $50 less than he originally agreed to. It was satisfied when Ann paid the money cuts Jim's hair. If Ann had not paid the money or given the haircut, he could choose to sue either on the original $100 contract or on the accord.
Accord and satisfaction.
With a modification, the original contract is the only contract and it's not conditional. Jim could've only sued on the new version. If they modified the contract, say to $75, Jim could only sue on the $75.
Did I make it worse?