Generally, the terms of a new agreement with respect to payment must be fully performed in order for an accord and satisfaction to result, where the satisfaction contemplated by the accord involves payment in something other than money.[i]
The intent of the parties determines whether or not there is an accord and satisfaction by the delivery and receipt of a debtor’s note, without payment of the note. Furthermore, in the absence of an express or implied agreement to take a check or note in satisfaction of a debt, there is no extinguishment of the claim on the theory of accord and satisfaction until the instrument is paid.[ii]
The accord and satisfaction is not executory and not binding when a party cannot retain a major portion of the proceeds of the accord and satisfaction and return only a minor portion of the consideration.[iii]
[i] Corrigan v. Payne, 312 Mass. 589, 45 N.E.2d 829 (1942)
[ii] Arkansas Farmers Ass’n v. Yohe, 227 Ark. 670, 300 S.W.2d 589 (1957)
[iii] Rosenfeld v. Glickstein, 159 So. 2d 670 (Fla. Dist. Ct. App. 1st Dist. 1964).