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New Hampshire – Accord and Satisfaction

The rule in New Hampshire is that the question of whether accord and satisfaction has been established is a question of fact.[i]  In order to establish an accord and satisfaction, it is necessary that a plaintiff has accepted, or agreed to accept, the satisfaction proposed by defendant.  However, the burden is on defendant to prove an accord and satisfaction by establishing either an express agreement or an estoppel in fact.

An accord and satisfaction may properly be defined as a method of discharging a contract, or setting aside a cause of action by substituting for such contract or cause of action, an agreement for the satisfaction thereof and the execution of such subsequent agreement.[ii]  The essential elements of an accord and satisfaction are:

  • proper subject matter;
  • competent parties;
  • an assent or meeting of the minds;
  • a consideration.

 

[i] Post Road Realty v. Zee-Bar, Inc., 117 N.H. 136 (N.H. 1977)

[ii] Decato Bros. v. Westinghouse Credit Corp., 129 N.H. 504 (N.H. 1987)


Inside New Hampshire – Accord and Satisfaction