Which element is essential for accord and satisfaction to discharge the original obligation?

Which element is essential for accord and satisfaction to discharge the original obligation?

• A. The creditor agrees to accept a different performance in full satisfaction.
• B. The original debt is cancelled without any new performance.
• C. No new performance is required.
• D. The agreement must be in writing.

Answer: (A)

Accord and satisfaction works when the parties agree that a different performance will fully satisfy the debt, and that substituted performance is then completed. The essential element is the creditor’s acceptance of a different performance as full satisfaction of the obligation. If the creditor simply cancels the debt or if no new performance is required, there’s no accord and satisfaction—the original obligation would stay in place or be discharged by other means, not by substituted performance. The agreement does not have to be in writing in all cases, so a purely oral accord and satisfaction can be effective unless the underlying deal or the substituted agreement falls under writing requirements of the statute of frauds.

Accord and satisfaction works when the parties agree that a different performance will fully satisfy the debt, and that substituted performance is then completed. The essential element is the creditor’s acceptance of a different performance as full satisfaction of the obligation. If the creditor simply cancels the debt or if no new performance is required, there’s no accord and satisfaction—the original obligation would stay in place or be discharged by other means, not by substituted performance. The agreement does not have to be in writing in all cases, so a purely oral accord and satisfaction can be effective unless the underlying deal or the substituted agreement falls under writing requirements of the statute of frauds.