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 significance of accepting a lesser value in an accord in satisfaction?

Can you provide an example of how parties might reach an accord in satisfaction?