An accord is an agreement to accept, in extinction of an obligation, something different from that to which the person agreeing to accept is entitled.[i]
To constitute an accord and satisfaction in South Dakota, there must be an agreement between creditor and debtor to extinguish the obligation in a given manner and a compliance with that agreement by the creditor.[ii] The agreement is the accord, and the execution of the new agreement is the satisfaction. The new executed contract takes the place of and satisfies the old executory contract. It is an affirmative defense. The burden of proof to establish such defense is on the party who seeks to rely on it.
[i] High Plains Genetics Research v. J K Mill-Iron Ranch, 535 N.W.2d 839 (S.D. 1995)
[ii] Hubbard Milling Co. v. Frame, 310 N.W.2d 155 (S.D. 1981)