Written by attorney Ryan Hardy

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:

  1. The debtor has a good faith dispute as to the amount of the debt or that they owe any debt.

  2. The debtor sends a check to the creditor.

  3. The check or a supporting statement has a clear, conspicuous statement that the check is being offered as a full satisfaction of the claim.

  4. 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.

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