Accord and Satisfaction
Definition - What does Accord and Satisfaction mean?
Accord and satisfaction refers to a concept of American contract law where an original contract is replaced with a new contract. Furthermore, the purpose of this new contract is to settle on a agreement of how to discharge the first contract because one of the parties to the contract no longer thinks the contract terms were fair.
Justipedia explains Accord and Satisfaction
For example, say that a future homeowner and a contractor agree to build a home for the future homeowner for $400,000. Under their agreement, the future homeowner will provide the contractor with $200,000 before the building of the home begins and will provide the contractor with the additional $200,000 upon completion of the home. The future homeowner pays the $200,000 up front, but once the house is complete the homeowner is unhappy with the house because it is not built to the specifications the two parties agreed on. The contractor and the future homeowner agree that the homeowner should only have to pay $125,000 for the home. This is an example of accord and satisfaction.