What is “Accord & Satisfaction”?

“A method of discharging a claim whereby the parties agree to give and

accept something in settlement of the claim and perform the agreement,
the ‘accord’ being the agreement and ‘satisfaction’ its execution or
performance, and it is a new contract substituted for an old contract which
is thereby discharged, or for an obligation or cause of action which is
settled, and must have all the elements of a valid contract.

“An ‘accord and satisfaction’ arises where parties, by a subsequent

agreement, have satisfied the former one, and the latter agreement has
been executed. The execution of a new agreement may itself amount to a
satisfaction, where it is so expressly agreed by the parties...”

“In some jurisdictions, novation is a species of accord and satisfaction.”

-Black’s Law Dictionary, Fifth Edition