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Alabama – Accord and Satisfaction

According to Code of Ala. § 8-1-20, an “accord” is an agreement to accept in extinction of an obligation something different from or less than that to which the person agreeing to accept is claiming or entitled.  In Alabama, Code of Ala. § 8-1-22 explains that acceptance of the consideration of an accord extinguishes the obligation and is called satisfaction.

Code of Ala. § 8-1-21 further states that though the parties to an accord are bound to execute it, it does not extinguish the obligation until it is fully executed.  An obligation is extinguished by a release therefrom given to the debtor by the creditor upon a new consideration or in writing with or without new consideration, according to Code of Ala. § 8-1-23.

Inside Alabama – Accord and Satisfaction