Also known as: satisfy · satisfies · satisfied · satisfying · accord and satisfaction
Written by attorneys · grounded in primary & secondary sources — see below
3 senses
Performance of an accord that discharges the original contractual obligation. The obligor must complete the substitute performance for the creditor to release the initial duty.
Performance of an accord that discharges the original contractual obligation. The obligor must complete the substitute performance for the creditor to release the initial duty.
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Payment of a mortgage debt that discharges the security interest and entitles the mortgagor to a release of the mortgage or reconveyance of title.
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An inter vivos gift from a testator to a beneficiary that reduces the beneficiary's share under the will when the testator intended the gift to count against the testamentary bequest.
Select any source to read its text and confirm it supports the definition.
Payment of a mortgage debt that discharges the security interest and entitles the mortgagor to a release of the mortgage or reconveyance of title.
An inter vivos gift from a testator to a beneficiary that reduces the beneficiary's share under the will when the testator intended the gift to count against the testamentary bequest.
Each sense below has its own examples, sources, and questions.
Alpha Builders owed Delta Supplies under a supply contract. The parties reached an accord for partial payment in equipment. After Alpha delivered the equipment Delta recorded the satisfaction and released the original obligation.
TechStart owed Apex Consultants under a services agreement. They executed an accord calling for software licenses instead of cash. Once TechStart transferred the licenses Apex executed a satisfaction discharging the fee obligation.
RetailCo faced a breach claim from Vendor Inc. The parties agreed to an accord of discounted future orders. After RetailCo fulfilled the orders Vendor filed a satisfaction of judgment ending the suit.
Metro Hospital owed MedEquip under a purchase contract. They formed an accord for diagnostic machines in place of cash. After delivery MedEquip executed the satisfaction releasing the monetary debt.
Satisfaction of an accord occurs only after the obligor performs the substitute duty, at which point the original obligation is discharged. A substituted contract immediately replaces the original duties without requiring later performance of the substitute.
Supporting sources
Stonehaven Properties borrowed funds secured by a mortgage on its commercial building. After making the final payment Stonehaven demanded a release. The mortgagee recorded the satisfaction and reconveyed title.
Sapphire Holdings paid its home loan in full. The lender confirmed receipt and executed a satisfaction of mortgage. The county recorder then removed the lien from the public records.
Payment of the full mortgage obligation generally entitles the mortgagor to a recorded satisfaction and reconveyance of title. Recording the satisfaction clears the public records and removes the lien.
Supporting sources
Under the modern trend an inter vivos gift counts against a beneficiary's share only when a contemporaneous writing shows the testator intended the gift to satisfy part or all of the devise. Absent such evidence the gift does not reduce the testamentary bequest.
Supporting sources
…upon the defendant to prove otherwise. In the present case Swift was a bona fide holder without notice and received the bill in satisfaction of a pre-existing debt. The only question is whether that pre-existing debt constitutes a 'valuable consideration' within the general rule for negotiable instruments. The defendant argued…