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Nebraska – Accord and Satisfaction

According to Nebraska courts, accord and satisfaction applies only in circumstances where the debt is unliquidated and in dispute.[i]  The dispute must be in good faith, and the creditor must have reasonable notice that the amount is in dispute and that the check is tendered in full satisfaction of the debt.  Where a creditor mistakenly sends a bill for an amount less than what is actually owed, payment of that amount will not operate as full satisfaction; even if the debtor endorses the check “for balance in full.”  Moreover, accord can be set aside or reformed and enforced on grounds of fraud or mistake.

An accord and satisfaction is a discharge of an existing indebtedness by the rendering of some performance different from that which was claimed as due and the acceptance of such substituted performance by the claimant in full satisfaction of the claim.[ii]  The burden of proof to maintain an alleged accord and satisfaction is on the party seeking to enforce it.  It is to be shown that the minds of the parties to the accord and satisfaction meet.  The key element of accord and satisfaction is the intent of the parties, which becomes a question of law when the evidence creates no conflict as to intent.

 

[i] Cass Constr. Co. v. Brennan, 222 Neb. 69 (Neb. 1986)

 

[ii] Lone Cedar Ranches v. Jandebeur, 246 Neb. 769 (Neb. 1994)


Inside Nebraska – Accord and Satisfaction