1. What is an Accord and Satisfaction? Explain. 2. You\'re having a dispute with
ID: 351574 • Letter: 1
Question
1. What is an Accord and Satisfaction? Explain.
2. You're having a dispute with Ford Motor Credit. You're sure you made last month's $800 payment, but they claim they never received it. You decide to refinance your loan with a new lender, and pay off Ford but make your check $800 short, to account for the money you paid and that Ford can't find. To be safe, you write "PAYMENT IN FULL" on your payoff check. Ford refuses to release your car title because it claims you still owe $800. Who wins? Explain.
Explanation / Answer
Accord means an agreement of terms and satisfaction is the performance of the said agreement. When both accord and satisfaction take place, and performance of terms is done, all the previous claims related to the contract are discharged. Basically, accord and satisfaction is a legal contract whereby two parties agree to let go of liability based on some form of compensation. Agreement here is accord and compensation is satisfaction.
Ford will win the case. They cannot let go of your obligation because payment of $800 has not been received. The accord here would be the agreement to release the car title in the case full payments are done (satisfaction). However, since the satisfaction does not take place you are still liable to pay $800 for getting your car released OR you need to find proof of payment of $800 that has not been received by Ford for last month to get your car released.
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