Accord and Satisfaction - Issue 1

No statutory language available.

An accord is an agreement in which parties agree to discharge a preexisting contract or cause of action by giving and accepting a substituted consideration in settlement of the claim, and the satisfaction is the execution or performance of the agreement. See Seidler v. Vaughn Oil Co., 468 N.W.2d 474 (Iowa Ct.App. 1991). Both parties must intend the substituted consideration as an accord and satisfaction of a preexisting claim. Id. Accord and satisfaction only applies to unliquidated claims (a claim is unliquidated if there is a genuine dispute regarding the amount due or the liability of the party). Id. The defendant in the suit bears the burden of proving an accord and satisfaction defense by a preponderance of the evidence. Barrett v. Akin Building Center, 2022 WL 1973038 (Iowa Ct.App. 2002) (holding defendant failed to present evidence supporting its accord and satisfaction claim).