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Accord and Satisfaction

15 January, 2016 - 09:33

Discharge by accord and satisfaction is a fourth way of mutual rescission. Here the parties to a contract (usually a disputed one) agree to substitute some performance different from what was originally agreed, and once this new agreement is executed, the original contract (as well as the more recent accord) is satisfied. But before then, the original agreement is only suspended: if the obligor does not satisfy the accord, the other side can sue on the original obligation or on the accord.


Parties to a contract may agree to give it up. This may be by mutual rescission, release, waiver, novation, substituted agreement, or accord and satisfaction.


  1. How does mutual rescission discharge a common-law contract without apparent new consideration?
  2. What is the difference between a substituted agreement and a novation?
  3. What happens if the parties negotiate an accord and satisfaction and one side fails to perform it?
  4. If an obligee accepts performance from the obligor that deviates from the contract, under what circumstances can the obligee nevertheless insist on strict compliance in the future?