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Kentucky – Accord and Satisfaction

According to Kentucky courts, an “accord” is the agreement, and “satisfaction” is its execution or performance.”[i]  A valid accord and satisfaction completely discharges the obligor’s existing duties, and constitutes a defense to any attempt to enforce the claim.  An offer in satisfaction of a claim must be accompanied by an express condition that the acceptance is in full satisfaction of the claim and that the offeree takes the money subject to such condition.  The circumstances must clearly indicate to the creditor that this condition is present

When there is a genuine dispute between the parties as to the amount due, and a sum is tendered in satisfaction of the claim, its acceptance is a complete accord and satisfaction.[ii]


[i] Bruestle v. S & M Motors, 914 S.W.2d 353 (Ky. Ct. App. 1996)


[ii] Warfield Natural Gas Co. v. Allen, 261 Ky. 840 (Ky. 1935)

Inside Kentucky – Accord and Satisfaction