accord and satisfaction
- An arrangement where a person agrees to accept less than what they're owed as a final settlement. By making this deal and receiving the reduced payment, the original debt is considered settled and erased
- After the business dispute, they decided to reach an accord and satisfaction to avoid further litigation.
- The tenant, owing back rent, proposed an accord and satisfaction to the landlord.
- Unable to repay all their loans, the company resolved their debt through an accord and satisfaction with the bank.