Which of the following best describes the purpose of 'accord and satisfaction' in contract law?

The purpose of 'accord and satisfaction' in contract law is to release one or both parties from further obligations under a contract. This legal mechanism occurs when one party agrees to accept something different from what was originally stipulated in the contract as full settlement of a dispute or claim. Essentially, 'accord' involves the agreement to settle the dispute, while 'satisfaction' refers to the performance of that agreement.

This offers a way for the parties to resolve any differences over the fulfillment of the contract terms without needing to pursue further legal action or adhere to the original obligations that may have become contentious. By reaching an accord, the parties can avoid litigious processes and effectively close the matter with mutual consent, leading to a release from further obligations related to the dispute.