In Alaska, an accord is a contract between a creditor and debtor for a settlement of the creditor’s claim by some performance other than that which is due. Satisfaction is the performance of such a contract.[i]
Accord and satisfaction is one of the recognized methods of discharging and terminating an existing right.[ii] It constitutes a perfect defense in an action for the enforcement of a previous claim. However, an accord requires an offer, acceptance, and consideration. Thus, the enforceability of an accord is governed by the general rules of contracts. An offer of accord or intent to offer an accord must exist in order to make the accord and satisfaction valid. Moreover, the accord and satisfaction should not be the result of mere fortuity, and some antecedent discussion of the accord is ordinarily required.
[i] Air Van Lines v. Buster, 673 P.2d 774, 777 (Alaska 1983).
[ii] National Bank v. Warfle, 835 P.2d 1167 (Alaska 1992)