Reference no: EM133811396

Question

Condense this Accord and Satisfaction: This is a process where two parties agree to modify their original contract with new terms and conditions. Accord: This is the new agreement that outlines the different terms and obligations. It does not cancel the original contract but temporarily suspends it. Satisfaction: This refers to fulfilling these new terms and obligations. Once the new terms are fully performed, the initial contract is considered fulfilled and no longer binding. Key Points to Consider: Suspension, Not Replacement: An accord temporarily puts the original contract on hold. It doesn't replace it right away. Only once the new agreement (accord) is fully performed (satisfaction) does the original contract cease to exist. Failure to Perform: If one party fails to fulfill the new agreement (does not achieve satisfaction), they can be held responsible under the original contract's terms. This means they can be liable for not following through with the initial agreement. Breach of Accord: If the new agreement (accord) is breached, the non-breaching party has the option to seek remedies either under the new agreement or revert to the initial contract for recovery. However, they cannot recover damages under both; it's one or the other.