Accord Agreement Legal Definition

If Company A does not provide the new conditions for any reason, it may be held responsible for the original contract because it did not meet the terms of the agreement. Agreement and satisfaction are not a substitute for the original contract; on the contrary, it suspends the ability to execute this contract, as long as the terms of the contract are met as agreed. When a person is prosecuted for an alleged misconduct, that person bears the burden of proof of the affirmative defence of compliance and satisfaction. Compliance and satisfaction is a concept of contract law that generally applies to obtaining an exemption from the debt obligation. Debt negotiations can lead to agreement and satisfaction. Take, for example, the bank and Company A. Company A has a credit contract with the bank that puts pressure on the balance sheet. The bank is working with Company A and the initial credit agreement is being revised. The new terms could allow Company A to make more minor payments, repay debt at a lower interest rate, repay less than the original commitment or other agreement. The legal definition of the agreement is an agreement between two parties that fulfills a contractual dispute by fulfilling an initial contractual obligation and submitting another compliance with the agreement. The word agreement is used as a synonym for the word contract.

It is often an agreement to drop the charges if another condition is met. An agreement and satisfaction are also considered a legal contract and must contain all the necessary elements of the contract, including: Another example would be for a lender to agree to borrow US$100,000 at 5.0% interest for 30 years, and at the conclusion, all loan documents are drawn up for a loan at a 6.0% interest rate. If the lender agrees to reduce the purchase costs by an additional $1,000 and borrowers agree, there has been convergence and satisfaction. If borrowers later complain of a breach of contract, the transaction (offer and acceptance of the USD 1000) is a match and satisfaction and constitutes a valid defense of the borrower`s action. An agreement is also reached when a party agrees to assume another obligation in lieu of the original commitment in the contract. An agreement is deemed enforceable if its commitments have not yet been fulfilled. By: correspondence and satisfaction in A Dictionary of Accounting ” To bring (people) to an agreement; the Committee on the Environment, the Committee on the Environment, the Committee on the Environment, the Committee on the Environment, an agreement and satisfaction can be used as a form of compromise which benefits both parties if, for whatever reason, the initial terms of the contract cannot be respected.