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.
Title: Understanding the Texas Notice Accompanying Check Tendered in Settlement of Disputed Claim Introduction: In Texas, when a disputed claim is settled, it is common for a Notice Accompanying Check to be given to the claimant as a means of documenting the settlement agreement. This comprehensive guide provides a detailed description of what a Texas Notice Accompanying Check entails, its purpose, and the different types of notices that may be included. 1. Purpose of Texas Notice Accompanying Check: The primary objective of a Texas Notice Accompanying Check is to ensure transparency and clarity during the settlement of a disputed claim. It serves as a formal notice to the claimant, informing them about the terms of the settlement agreement and releases any further liability or future claims related to the dispute. This notice provides both parties with a legal record of the settlement. 2. Key Components of Texas Notice Accompanying Check: a. Settlement Terms: The notice will outline the detailed terms and conditions agreed upon to resolve the disputed claim, including the amount of the settlement, payment schedule (if applicable), and any pertinent conditions or restrictions. b. Release of Liability: The notice will explicitly state that by accepting the check, the claimant releases the other party involved from any further liability, claims, or legal actions related to the dispute. c. Confidentiality Clauses: In some cases, a notice might include confidentiality clauses, prohibiting the claimant from discussing the settlement agreement publicly or with third parties. d. Rights Acknowledgment: The notice may require the claimant to acknowledge that they fully understand the legal implications of the settlement, ensuring they are making an informed decision. 3. Types of Texas Notice Accompanying Check: a. Basic Settlement Notice: This is the standard type of notice used in most disputed claims to outline the basic settlement terms and release of liability between the parties involved. b. Notice with Non-Disclosure Agreement (NDA): In certain cases, particularly when the settlement terms involve sensitive or confidential information, a notice may include an NDA, compelling the claimant to maintain confidentiality regarding the settlement agreement. c. Notice with Waiver of Future Claims: If both parties agree to completely resolve all potential claims arising from the dispute, the notice may incorporate a waiver of future claims' clause, preventing any future legal action related to the same issue. In conclusion, the Texas Notice Accompanying Check plays a crucial role in formally documenting the settlement of a disputed claim. It ensures transparency, provides legal clarity for both parties, and brings finality to the resolution process. Understanding the purpose and different types of notices associated with this process is essential to navigate settlements effectively and protect one's legal rights.
