Accord and Satisfaction


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Accord and Satisfaction

In contract law, a situation in which a debtor buys debt forgiveness from the creditor. For example, suppose one owes $100,000 to a creditor and is paying monthly. The debtor may agree with the creditor to make accord and satisfaction for $75,000 immediately. This provides the creditor with immediate liquidity and relieves the debtor of the debt. In the event of a dispute, the burden of proof that accord and satisfaction have been made lie with the debtor.