In Wisconsin, an “accord and satisfaction” is an agreement to discharge an existing disputed claim, and it constitutes a defense to an action to enforce the claim.[i] An accord and satisfaction requires an offer, an acceptance, and consideration. The offer must be assented to, in order for an accord and satisfaction to exist. Assent does not require mental assent or a “meeting of the minds.” If a check offered by the debtor as full payment for a disputed claim is cashed by the creditor, the creditor is deemed to have accepted the debtor’s conditional offer of full payment notwithstanding any reservations by the creditor.
The law in Wisconsin is that the resolution of an actual controversy involving some subject of pecuniary value and interest to the parties is sufficient consideration for an accord and satisfaction.[ii] Therefore, an accord and satisfaction would be valid, if it is in consideration of the settlement of the disputes between the parties.
[i] Evers v. Fryer, 1995 Wisc. App. LEXIS 1300 (Wis. Ct. App. Oct. 24, 1995)
[ii] Superior Builders, Inc. v. Large, 52 Wis. 2d 563 (Wis. 1971)