Accord and Satisfaction - Issue 2

A party that with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as “without prejudice”, “under protest”, or the like are sufficient. This does not apply to an accord and satisfaction.(I.C.A. § 554.1308)

Accordingly in Iowa, the common law rules for accord and satisfaction still apply, and are not inconsistent with the present UCC section 1-207. See, e.g., Seidler v. Vaughn Oil Co., 468 N.W.2d 474,(Iowa Ct. App. 1991) (setting forth common law requirements for accord and satisfaction when analyzing whether a check stating "Full, Final Settlement for Damages to Tractor" constitutes an accord and satisfaction). Provided all the elements of an accord and satisfaction are met in Iowa, and if the claim is unliquidated, a check rendered in full satisfaction of a debt does satisfy any preexisting contractual debt owed by debtor/payor.