Conformity and satisfaction is the concept of contract law on the purchase of exemptions from debt obligations. This is one method by which the parties to a contract may terminate their agreement. The release is completed with the transfer of valuable considerations that should not be the actual performance of the obligation itself. Agreement is an agreement to release obligations and satisfaction is a legal "consideration" that binds the parties to the agreement. Legal agreements do not release previous contracts; but rather suspends the right to enforce it in accordance with the terms of the contract of conformity, in which the satisfaction, or performance of the contract will free both contracts (the original and the deal). If the creditor breaches the agreement, then the debtor will be able to reveal the existence of the agreement to order any action against it.
If a person is sued for the alleged debt, the person bears the burden of proving a plea and affirmative agreement.
Video Accord and satisfaction
Ilustrasi
Conformity and satisfaction is the settlement of unqualified debt. For example, a builder is contracted to build a homeowner a garage for $ 35,000. The contract requested $ 17,500 before the start of construction, to disburse $ 10,000 during various stages of construction, and to make a final payment of $ 7,500 upon completion. Upon completion, homeowners complain about lower quality jobs and refuse to make any final payments. After a joint settlement agreement, the builder receives $ 4,000 as full payment. Thus, a new contract is formed by supply, acceptance, and consideration. The consideration is that for a savings of $ 3,500, the homeowner hands over what he's entitled, a well-constructed garage. Builders give up their rights to full price so as not to be suitable for lower performance. When agreement and satisfaction have taken place, the homeowner has given up his right to demand a lower performance, and the builder has granted him the right to demand a full $ 7,500 due on original contract.
Another example is where the lender agrees to lend $ 100,000 at 5.0% interest for 30 years, and at the closing of the loan documents are all set up for a loan with an interest rate of 6.0%. If the lender agrees to reduce the closing costs by an additional $ 1000 and the borrower agrees, then there has been agreement and satisfaction. If the borrower then sues for a breach of contract, the settlement (bid and receipt of $ 1000) is an agreement and satisfaction and is a valid defense for the borrower's lawsuit.
The agreement agreement must be transacted on the new agreement. It must therefore have important terms of a contract, (party, subject matter, time for performance, and consideration). If there is a breach of the agreement there will be no "satisfaction" that will lead to a breach of agreement. In this case the non-infringing party has the right to claim under the original contract or treaty agreement.
Maps Accord and satisfaction
Considerations
In a contract of conformity it is typical that the consideration given is less than that offered in the initial contract. In accordance with contracts that require a number of considerations less than the original, the consideration must be of a different type, ie, instead of money, the debtor offers a car or boat.
See also
- Foakes v. Beer - the old case with the exception of the deal and the satisfaction in which the debt is not at odds
- D & amp; C Builders Ltd v Rees - where the creditor accepts the offer under pressure
- Pinnel's Case - where a lower amount payment should be paid before the debt matures
- Hirachand Punumchand v Temple - where offeree is a 3rd party (debtor's father)
- Performance section - related legal concepts
- Jacob & amp; Young, Inc. v. Kent , 230 N.Y. 239, (N.Y. App. 1921).
References
Source of the article : Wikipedia
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