What is the term for a contract law concept involving payment to release from a debt obligation?

The term "accrued and satisfaction" refers to a specific legal contract concept that allows parties to settle a dispute over a debt obligation by agreeing to new terms. In this context, "accord" is the new agreement where the creditor and debtor agree to an alternative arrangement, which differs from the original obligation. "Satisfaction" occurs when the agreed-upon performance is completed, thereby discharging the original debt.

This concept is significant in contract law because it ensures that both parties can come to a mutual agreement that may be more advantageous or feasible than the original terms. This process could involve partial payment or a different form of consideration that the creditor accepts to relinquish the original debt.

Understanding "accord and satisfaction" is fundamental because it helps resolve disputes and offers a route for debtors to negotiate their obligations without the need for litigation, contributing to more flexible financial arrangements. The other options relate to different aspects of contract law and debt but do not describe the process of creating a new agreement that resolves an existing debt through negotiation.