Accord and Satisfaction under Indian Contract Act, 1872

Abstract

Accord and Satisfaction, under contract law, refers to the process of purchasing a release order from contractual obligation through any consideration. It is the doctrine which honours the discharge of a contract and the obligations it defines by the way of forming a substituted contract. Accord refers to an agreement under which these terms are binding and the valuable consideration which is provided for discharge of the previous contract refers to as Satisfaction. In a simpler term, this doctrine can be explained as when one party fails to perform the contractual obligations but in return makes a purchase of and/or forms another contract which nullifies the older contracts and its obligations, takes form of an accord, and the valuable consideration which is paid in return of getting contractual obligations released takes form of Satisfaction.

This paper mainly focuses on providing insights on the matters related to the doctrine of accord and satisfaction and its application under the Indian Contracts Act, 1872.