North Carolina courts hold that an accord and satisfaction is compounded of the two elements enumerated in the term.[i] An “accord” is an agreement whereby one of the parties undertakes to give or perform and the other to accept, in satisfaction of a claim, liquidated or in dispute, and arising either from contract or tort, something other than or different from what s/he is, or considers himself/herself, entitled to. A “satisfaction” is the execution or performance, of such agreement. However, if the accord in an accord and satisfaction is fully performed, the performance satisfies the original claim.
Plaintiff has the burden of proof on accord and satisfaction.[ii] As a matter of law, when there is some indication on a check that it is tendered in full payment of a disputed claim, the cashing of the check is held to be an accord and satisfaction.[iii]
[i] Dobias v. White, 239 N.C. 409 (N.C. 1954)
[ii] N. C. Monroe Constr. Co. v. Coan, 30 N.C. App. 731 (N.C. Ct. App. 1976)
[iii] Moore v. Bobby Dixon Associates, Inc., 91 N.C. App. 64 (N.C. Ct. App. 1988)