What Is A Satisfaction Agreement

Compliance and satisfaction is an approach to contract law regarding the acquisition of a duty of guilty. This is one of the methods by which contracting parties can terminate their contract. Unlocking is complemented by the transfer of valuable counterparties that must not be the actual compliance of the commitment itself. [1] The agreement is the agreement to implement the commitment and satisfaction is the legal “reflection” that binds the parties to the agreement. A valid agreement does not alleviate the previous treaty; on the contrary, it suspends the right to apply it according to the terms of the contract, in which the satisfaction or execution of the contract will relieve the two contracts (the original and the agreement). If the creditor does not comply with the agreement, the debtor can invoke the existence of the agreement to bring legal action. Correspondence and satisfaction are generally a matter of state law and are generally defined as an agreement for the completion of an application in which the parties agree to give and accept another benefit, generally less than is necessary or due. Any claim based on an explicit or tacit contract can be agreed and met. See our article on contracts. Since an agreement is seen as a new agreement that replaces the old one, coherence and satisfaction must contain all the essential elements of a treaty. If Company A does not provide the new conditions for any reason, it may be held responsible for the original contract because it did not meet the terms of the agreement. Agreement and satisfaction are not a substitute for the original contract; on the contrary, it suspends the ability to execute this contract, as long as the terms of the contract are met as agreed.

In this case, Bob`s obligation to pay Sally $600 was legally discharged. This type of relief from contractual conditions is called an agreement. Compliance and satisfaction is a concept of contract law that generally applies to obtaining an exemption from the debt obligation. Debt negotiations can lead to agreement and satisfaction. Take, for example, the bank and Company A. Company A has a credit contract with the bank that puts pressure on the balance sheet. The bank is working with Company A and the initial credit agreement is being revised. The new terms could allow Company A to make more minor payments, repay debt at a lower interest rate, repay less than the original commitment or other agreement. In the absence of such an intention, the partial payment will have only a relief effect of the amount paid and the creditor is entitled to maintain an action in recovery of the balance of his debt.