Accord and satisfaction is a method of discharging a claim whereby the parties agree to give and accept something in settlement of the claim and perform the agreement. Accord is the agreement and satisfaction is its execution or performance.
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.
In order for there to be an accord and satisfaction, there must be
(1) a bona fide dispute;
(2) an agreement to settle the dispute; and
(3) the performance of the agreement.
A settlement in which one party promises to forego an undisputed, liquidated claim in exchange for a promise to perform, or the performance of, a pre-existing duty will not be held to be enforceable by many courts, because of the absence of consideration. However, the promise to perform, or the performance of, anything slightly different from the pre-existing duty is sufficient consideration to support a promise to forego the claim. When a claim is disputed in good faith, or when an undisputed claim is unliquidated (the amount owed has not been determined), a settlement of such a claim is clearly enforceable.
A "Phoenix Arizona Agreement for Accord and Satisfaction of an Undisputed Hospital Claim" refers to a binding legal agreement made in Phoenix, Arizona, between a hospital and a party responsible for payment of a medical bill. This arrangement is specifically designed to settle an undisputed hospital claim amicably. In such agreements, both the hospital and the responsible party mutually agree to resolve the outstanding medical bill through Accord and Satisfaction—a legal principle that allows for the satisfaction of a debt through an agreement differing from the original terms. By reaching this agreement, both parties can avoid costly and time-consuming litigation. The "Phoenix Arizona Agreement for Accord and Satisfaction of an Undisputed Hospital Claim" commonly covers various aspects: 1. Claimant Information: This section includes details of the party responsible for the medical bill, such as name, contact information, and any relevant insurance information. 2. Hospital Information: This part includes the hospital's name, contact details, and other relevant information. 3. Amount Owed: This section outlines the specific amount owed by the responsible party to the hospital, clearly stating the outstanding balance and any related charges. 4. Payment Terms: The agreement specifies the terms of payment accepted by the hospital, such as cash, check, or credit/debit card. It may also outline installment options or any other payment arrangements agreed upon. 5. Accord and Satisfaction Clause: This critical section defines the terms under which both parties agree to settle the claim. It states that the responsible party's payment, which is less than the total outstanding amount, will be considered satisfactory for the debt in question. 6. Release of Liability: By signing the agreement, the responsible party acknowledges that the hospital's acceptance of the agreed payment will release them from any further liability or obligations regarding the specific medical bill. 7. Signatures: This section requires the signature of both parties involved, along with the date of agreement, ensuring its legal validity. It's important to note that while the description provided above is a general outline of a "Phoenix Arizona Agreement for Accord and Satisfaction of an Undisputed Hospital Claim," there may be variations or customized versions depending on individual circumstances or hospital policies. Different hospitals in Phoenix, Arizona, may have their own specific formats or additional clauses tailored to their requirements.A "Phoenix Arizona Agreement for Accord and Satisfaction of an Undisputed Hospital Claim" refers to a binding legal agreement made in Phoenix, Arizona, between a hospital and a party responsible for payment of a medical bill. This arrangement is specifically designed to settle an undisputed hospital claim amicably. In such agreements, both the hospital and the responsible party mutually agree to resolve the outstanding medical bill through Accord and Satisfaction—a legal principle that allows for the satisfaction of a debt through an agreement differing from the original terms. By reaching this agreement, both parties can avoid costly and time-consuming litigation. The "Phoenix Arizona Agreement for Accord and Satisfaction of an Undisputed Hospital Claim" commonly covers various aspects: 1. Claimant Information: This section includes details of the party responsible for the medical bill, such as name, contact information, and any relevant insurance information. 2. Hospital Information: This part includes the hospital's name, contact details, and other relevant information. 3. Amount Owed: This section outlines the specific amount owed by the responsible party to the hospital, clearly stating the outstanding balance and any related charges. 4. Payment Terms: The agreement specifies the terms of payment accepted by the hospital, such as cash, check, or credit/debit card. It may also outline installment options or any other payment arrangements agreed upon. 5. Accord and Satisfaction Clause: This critical section defines the terms under which both parties agree to settle the claim. It states that the responsible party's payment, which is less than the total outstanding amount, will be considered satisfactory for the debt in question. 6. Release of Liability: By signing the agreement, the responsible party acknowledges that the hospital's acceptance of the agreed payment will release them from any further liability or obligations regarding the specific medical bill. 7. Signatures: This section requires the signature of both parties involved, along with the date of agreement, ensuring its legal validity. It's important to note that while the description provided above is a general outline of a "Phoenix Arizona Agreement for Accord and Satisfaction of an Undisputed Hospital Claim," there may be variations or customized versions depending on individual circumstances or hospital policies. Different hospitals in Phoenix, Arizona, may have their own specific formats or additional clauses tailored to their requirements.
