Accord and Satisfaction in Florida
Accord and satisfaction is a method of discharging a disputed obligation by substituting and performing a new agreement in place of the original one. In Florida, this doctrine provides a practical way to resolve disagreements about amounts owed without going to court.
Elements Under Florida Law
Florida courts require three elements: a bona fide dispute about the obligation (either the amount or the existence of the debt), an offer by the debtor to settle the dispute on specific terms (the accord), and the creditor's acceptance of that offer through performance (the satisfaction). If any element is missing, the original obligation survives.
The "Paid in Full" Check
Florida UCC Section 673.3111 addresses the common scenario of a debtor sending a check marked "paid in full." If the creditor cashes the check knowing it was tendered as full settlement of a genuinely disputed claim, the creditor may be bound by the accord regardless of any protest notation. Businesses can protect themselves by establishing a designated person or office for receiving disputed payments, as provided under the statute.
Related Terms
Barnes Walker Litigation
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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC