Accord and Satisfaction in Arizona
In Arizona, two parties can agree to a lesser amount than what is actually owed. In order for this to occur, there needs to be a clear indicator that a full satisfaction of the debt is mutually agreed. An accord and satisfaction is one of those ways to demonstrate full satisfaction of the debt has been met. A good example of this is when a company sends a check to satisfy a claim by another. On the check, or a supporting document, it must indicate full satisfaction of the claim- and the check must be cashed. in order for an Accord and Satisfaction to be met, the following must occur:
The debtor has a good faith dispute as to the amount of the debt or that they owe any debt.
The debtor sends a check to the creditor.
The check or a supporting statement has a clear, conspicuous statement that the check is being offered as a full satisfaction of the claim.
The creditor must take the check and cash it or deposit it.
If the Creditor returns the check within 90 days, then no agreement exists.