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Judgments

A judgment ordering the payment of a lesser amount than demanded can be accompanied by accord and satisfaction only if there is some circumstance or act that has to be fulfilled in addition to part payment sufficient to constitute consideration.  In undisputed liquidated claims that are not restricted by statutory limitations, the general rule that part payment alone is not sufficient consideration for an accord and satisfaction of a liquidated demand applies.

The acceptance of a part payment decided by a judgment does not amount to an accord and satisfaction of the entire claim and such judgment can be appealed.  There can be no accord and satisfaction of a judgment which will accrue in the future.
Acceptance of a criminal restitution order does not reflect an accord and satisfaction and it cannot be considered as a waiver of civil remedies.

In Schwartz v. California Claim Service, Ltd., 52 Cal. App. 2d 47 (Cal. App. 1942), the creditor’s attorney signed the debtor’s offer to make a partial payment on an indebtedness as full accord and satisfaction and the creditor proceeded to institute collection efforts.  Enforcement of the agreement signed by the creditor’s attorney to accept partial payment as satisfaction was sought by the debtor.  The trial Court granted judgment favoring the creditor.  Upon appeal, the appellate Court reversed the trial Court’s judgment stating that the complaint alleged sufficient facts to constitute a valid accord and satisfaction of the debt.  The court further stated that partial performance by an obligor when expressly accepted in writing by a creditor extinguishes the obligation.


Inside Judgments