A contract is usually discharged by performance of the terms of the agreement. However, the parties may agree to a different performance. This is called an accord. When the accord is performed, this is called an accord and satisfaction. The original obligation is discharged.
Where a claim is disputed, and where the creditor fails to reject a check for a lesser amount remitted to the creditor by the debtor on the clear condition that it be accepted in full satisfaction, the acceptance on the part of the creditor amounts to an accord and satisfaction of the creditor's larger claim. No particular language is required to be used by a debtor in making a tender of a check in full settlement of a claim against the debtor, so long as the tender clearly indicates that acceptance by the creditor of the amount offered must be in full satisfaction of the claim.
The following form is a sample of a notice accompanying a check tendered in settlement of a claim that is in dispute.
The Alabama Notice Accompanying Check Tendered in Settlement of Disputed Claim is a legal document that serves as a notification to the recipient regarding the settlement of a disputed claim through the tendering of a check. This notice is required under Alabama law to provide all necessary information related to the settlement. Key information that should be included in the Alabama Notice Accompanying Check Tendered in Settlement of Disputed Claim document: 1. Date: The notice should indicate the date on which the settlement offer is being made. 2. Parties: Include the names and addresses of both the claimant and the settling party, along with their legal representatives or attorneys involved in the settlement. 3. Claim Details: Provide a detailed description of the disputed claim, including the nature of the dispute, relevant dates, and any supporting evidence/documentation. 4. Settlement Amount: Clearly state the settlement amount being offered, specifying whether it is a full and final settlement or a partial payment. 5. Check Details: Include the check number, amount, and the date on which it was issued. Ensure that the check matches the settlement amount mentioned in the notice. 6. Release of Liability: State that upon acceptance of the settlement amount, the claimant agrees to release the settling party from any further claims, liabilities, or lawsuits related to the disputed matter. 7. Acceptance Terms: Provide instructions on how the claimant should accept the settlement offer if they choose to do so. This may include signing and returning a copy of the notice to the settling party or their attorney. Types of Alabama Notice Accompanying Check Tendered in Settlement of Disputed Claim: 1. Full and Final Settlement Acknowledgment: This type of notice is used when the settling party offers a specific amount to resolve the claim entirely, ensuring that no further claims can be made. 2. Partial Payment and Resolution: In situations where the parties agree to settle the disputed claim with a partial payment, this notice confirms the agreed-upon amount and outlines any remaining obligations or potential future disputes. 3. Conditional Settlement Offer: Sometimes, a settlement offer may include specific conditions or requirements that need to be met before the claimant can receive the settlement amount. This notice would highlight those conditions and provide instructions on fulfilling them. It is essential to consult an attorney or legal professional when drafting an Alabama Notice Accompanying Check Tendered in Settlement of Disputed Claim to ensure compliance with all relevant laws and maximize its effectiveness in resolving the dispute.
