Generally in Arkansas, an accord and satisfaction involves a settlement in which one party agrees to pay and the other to receive a different consideration or a sum less than the amount to which the latter is or considers himself/herself entitled.[i] There must be a disputed amount involved. Consent to accept less than the amount in settlement of the whole before acceptance of the lesser amount can be an accord and satisfaction. It is necessary that it be made in good faith, while it is not necessary that the dispute or controversy be well founded.
Satisfaction is necessary to give effect to an accord, to extinguish the original obligation and to bar an action thereon.[ii] Where an accord has been only partly executed or performed, the right of action on the original claim or demand remains. The accord must be executed, and a mere executory agreement can never be pleaded as an accord and satisfaction. However, the whole accord fails if part of the consideration agreed on is not paid.
[i] Hardison v. Jackson, 45 Ark. App. 49 (Ark. Ct. App. 1994)
[ii] Lyle v. Federal Union Ins. Co., 206 Ark. 1123 (Ark. 1944)