In full discharge of demand, additional consideration to support a transaction as an accord and satisfaction will lie upon acceptance of a liquidated demand by a creditor in a different medium from that called for by the contract between the parties.  In such situations, courts will hold the debt satisfied and will not inquire into the adequacy of the consideration.  A demand of liquidated money may be discharged in accord and satisfaction by delivering property or part money and part property.  However, it should be received as full discharge of the debt.  If the creditor has any right over the property, the delivery of the property cannot be considered as full discharge of the debt.

If part payment is made before the debt is due, or at another place, or in a different medium than that required by the contract, it can be considered as good discharge of a debt.  When an amount less than the entire liquidated claim is paid by a debtor to a creditor before the debt is due or the maturity of obligation and the creditor accepts the early payment in full satisfaction of the entire claim, that payment is a sufficient consideration to support an accord and satisfaction of the claim.[i]

Providing additional security which the creditor has no right to demand can be taken as a sufficient consideration to support an agreement by the creditor to accept less than the full amount of the liquidated debt.  If the payment is made by a third person can be accepted as sufficient consideration for the creditor’s acceptance of a lesser amount than the amount of a liquidated claim.  It creates an accord and satisfaction.  However, if the payment is made by a check is issued by the debtor’s attorney shall not be considered adequate third-party payment discharging the remainder of the debt.[ii]

[i] Thielen v. Thielen, 88 Haw. 191 (Haw. Ct. App. 1998)

[ii] King Metal Products, Inc. v. Workmen’s Compensation Bd., 20 A.D.2d 565, 245 N.Y.S.2d 882