Accord

In one sentence

An agreement to settle a dispute by accepting different performance than originally promised.

Plain English

An accord is an agreement between two parties to resolve a disagreement by having one party do something different from what the original contract required. For example, if you owe someone $1,000 but can only pay $700, an accord is when they agree to accept the $700 as full settlement. The accord itself isn't complete until the new performance actually happens—that's called satisfaction.

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Example

A contractor was supposed to deliver 100 widgets but can only deliver 80. The buyer agrees to accept the 80 widgets at a reduced price instead of the original contract terms. This agreement is the accord.

Used in a sentence

“The parties reached an accord to settle the dispute by accepting partial payment instead of the full amount owed.”

Related terms

Satisfaction

The actual completion of the agreed-upon performance in an accord.

Discharge of Contract

The release of both parties from their contractual obligations.

Mutual Rescission

Both parties agreeing to cancel a contract and release each other from all obligations.

Release

A written agreement giving up a legal right or claim.

Good Faith

An obligation to act honestly and fairly in performing or enforcing a contract.

Mutual Consent

Both parties freely agree to the same terms of a contract without pressure or misunderstanding.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.