How To Prove A California Accord and Satisfaction Defense
In California, a defense of Accord and Satisfaction is defined as:
Accord and Satisfaction is an agreement (accord) between two contracting parties to accept alternate performance to discharge a preexisting debt between them and the subsequent performance (satisfaction) of that agreement.
It simply means:
When one person owes another money, but they decide to settle the debt with a different form or amount of payment.
There are 3 elements of the defense:
- Element 1. There was a bona fide dispute between two parties. A bona fide dispute between two parties means that both sides genuinely disagreed about an issue, which is important in legal cases where one party claims they settled a disagreement through an agreement that resolved their differences.
Facts that might support this element look like:
* The parties engaged in multiple discussions regarding the terms of the contract, indicating differing interpretations of their obligations.
* One party sent a written notice disputing the amount owed, highlighting specific charges they believed were incorrect.
* The parties exchanged emails where each presented their rationale for the amounts claimed, demonstrating a lack of agreement.
* During a meeting, both parties acknowledged their differing views on the performance of the contract, suggesting a genuine disagreement.
* The defendant made a partial payment accompanied by a letter stating it was made under protest, indicating a dispute over the total amount due. - Element 2. The debtor sent a certain sum on the express condition that acceptance of it will constitute full payment. A debtor can send a payment with the clear condition that accepting it means the creditor agrees to consider the debt fully settled, which can be a key part of a legal defense called Accord and Satisfaction.
Facts that might support this element look like:
* The debtor included a note with the payment stating that the enclosed amount was intended as full settlement of the outstanding debt.
* The creditor received the payment and did not communicate any objection to the condition stated by the debtor.
* The debtor has a history of settling debts using similar conditional payments without dispute from creditors.
* The payment was made in response to a specific demand for payment, indicating the debtor’s intent to resolve the matter completely.
* The creditor cashed the check knowing it was sent with the condition of full payment, thereby accepting the terms. - Element 3. The creditor so understands the transaction and accepts the sum. In an Accord and Satisfaction, the creditor agrees to a new payment amount, fully understanding the deal and accepting the reduced sum as a complete settlement of the original debt.
Facts that might support this element look like:
* The creditor acknowledged receipt of the reduced payment and confirmed it in writing.
* The creditor previously agreed to settle the debt for a lesser amount during negotiations.
* The creditor accepted the payment without objection and continued to provide services to the debtor.
* The creditor explicitly stated that the payment would satisfy the outstanding balance.
* The creditor’s representative verbally confirmed that the payment would resolve the dispute.
(See In re Marriage of Thompson, 41 Cal. App. 4th 1049 – Cal: Court of Appeal, 5th Appellate Dist. 1996. Thompson v. Williams (1989) 211 Cal. App.3d 566, 571. California Commercial Code Section 3311.)
If you’re in court without a lawyer and plan to assert a Defense of Accord and Satisfaction, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to effectively navigate your legal journey.
Prove Your CA Accord and Satisfaction Defense
U.S. Civil Cases Only