ARTICLE 3
NEGOTIABLE INSTRUMENTS
11-3-311. Accord and satisfaction by use of instrument.
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If a person against whom a claim is asserted proves that (i) such person in good faith tendered an instrument to the claimant as full satisfaction of the claim; (ii) the amount of the claim was unliquidated or subject to a bona fide dispute; and (iii) the claimant obtained payment of the instrument, then subsections (b), (c), and (d) of this Code section shall apply.
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Unless subsection (c) of this Code section applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.
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Subject to subsection (d) of this Code section, a claim is not discharged under subsection (b) of this Code section if either of the following applies:
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The claimant, if an organization, proves that:
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The claimant, whether or not an organization, proves that within 90 days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This paragraph does not apply if the claimant is an organization that sent a statement complying with subparagraph (i) of paragraph (1) of this subsection.
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A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated, the claimant or an agent of the claimant having direct responsibility with respect to the disputed obligation knew that the instrument was tendered in full satisfaction of the claim.
Within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office, or place; and
The instrument or accompanying communication was not received by that designated person, office, or place; or
(Code 1981, §11-3-311, enacted by Ga. L. 1996, p. 1306, § 3.)
JUDICIAL DECISIONS
Accord and satisfaction by check and accompanying letter.
- Deposit of a check constituted an accord and satisfaction under O.C.G.A.
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11-3-311 of a settlement agreement in a debt dispute as a dispute under O.C.G.A.
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13-4-103(b)(1) existed as to the fee portion of the settlement and the letter sent with the check contained a conspicuous statement under O.C.G.A.
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11-1-201(10) that the tender of the check was full payment and satisfaction of the settlement. Blitch v. Walker Pharm., 295 Ga. App. 347, 671 S.E.2d 842 (2008).
RESEARCH REFERENCES
U.L.A.
- Uniform Commercial Code (U.L.A.)
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3-311.
