In Missouri, the four elements of a valid accord and satisfaction are:
- something of value offered in full satisfaction of demand;
- accompanied by acts and declaration as amount to a condition that if the thing offered is accepted, it is accepted in satisfaction;
- the party offering the thing of value is bound to understand that if s/he takes it, s/he takes subject to such conditions; and
- the party actually does accept the item.[i]
There can be no accord and satisfaction if both the giving and the acceptance in satisfaction are lacking. An accord and satisfaction is a contract for the settlement of a disputed or unliquidated claim for an amount less than that claimed by the creditor.[ii] If the creditor cashes a check under circumstances where the check has been tendered in payment of an account on express condition that acceptance thereof shall be deemed to be satisfaction in full, an accord and satisfaction results notwithstanding protests on his/her part.
[i] Austin v. Padgett, 678 So. 2d 1002 (Miss. 1996)
[ii] McKee Constr. Co. v. Stanley Plumbing & Heating Co., 828 S.W.2d 700 (Mo. Ct. App. 1992)