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Effect of Suit or Appeal

When a claim is disputed, parties generally approach a court of law.  The filing of a suit ordinarily indicates that the claim is unliquidated or disputed.  If the debtor tenders an amount less than the entire claimed amount in full satisfaction of the claim and the creditor accepts the same, it may lead to a valid accord and satisfaction.  For instance, an action was pending in the court and the plaintiff agreed to release the defendant from the claim sued on upon defendant’s payment of the costs of the action, and if the defendant makes the payment as agreed, such payment amounts to an accord and satisfaction, and will serve as a good defense against the further prosecution of the action by the plaintiff.[i]

[i] Baum v. Buntyn, 62 Miss. 110 (Miss. 1884)

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