Satisfaction

In one sentence

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

Plain English

Satisfaction is what happens when the parties actually perform under an accord. It's the follow-through on the agreement to settle a dispute. So if you and someone else agree (accord) that they'll accept $700 instead of $1,000, satisfaction occurs when you actually pay the $700. Together, accord and satisfaction discharge the original contract obligation.

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Example

A contractor and homeowner agreed (accord) that the contractor would finish the job for $5,000 instead of $7,000. When the contractor completes the work and the homeowner pays $5,000, satisfaction has occurred.

Used in a sentence

“Satisfaction of the accord took place when the debtor paid the reduced amount and the creditor accepted it as full settlement.”

Related terms

Accord

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

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.

Executed Contract

A contract where both parties have fully performed all their obligations.

Good Faith

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

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.