Accord and Satisfaction

The video explains the concept of accord and satisfaction, a legal agreement that resolves a dispute by replacing an old contract with a new one. It describes how parties can settle disputes by agreeing to a new contract that supersedes the original, often involving a lesser exchange of value. An example is provided where a service provider and client resolve a payment dispute by agreeing to a reduced payment, thus satisfying the original obligation.

What is the primary purpose of an accord in satisfaction?

• To create a new contract with the same terms

• To resolve a dispute by replacing the old agreement

• To increase the obligations of both parties

• To terminate the existing contract without any replacement

How does an accord in satisfaction typically affect the exchange of value between parties?

• It maintains the original value

• It eliminates the need for any exchange of value

• It increases the value exchanged

• It results in a lesser exchange of value

In the context of an accord in satisfaction, what happens to the original agreement?

• It remains in effect alongside the new agreement

• It is modified to include new terms

• It is completely replaced by the new agreement

• It is nullified without any replacement

In the given example, what percentage of the payment amount do the parties agree to accept?

• 80%

• 90%

• 100%

• 70%

What is the main reason parties might enter into an accord and satisfaction?

• To add more parties to the agreement

• To extend the duration of the contract

• To increase the payment amount

• To avoid litigation and resolve disputes amicably