To constitute an accord and satisfaction in Vermont, an offer must be such that if a creditor accepts it, creditor is bound to understand that s/he takes it in full settlement.[i] If one who has a disputed or unliquidated claim against another accepts and retains a less amount than s/he claims is due, which is offered by the other in full settlement of such claim, it operates as an accord and satisfaction of such claim.[ii]
The party asserting accord and satisfaction must establish that:
- the claim is disputed;
- s/he offered to pay less than the amount purportedly due; and
- the other party accepted and retained the lesser amount offered in full settlement of his/her claim.
[i] Curran v. Bray Wood Heel Co., 116 Vt. 21 (Vt. 1949)
[ii] Harrington v. Mutual Benefit Health & Accident Ass’n, 108 Vt. 48 (Vt. 1936)