O.C.G.A. § 13-4-102 (2019)

Annotations

JUDICIAL DECISIONS Accord and satisfaction involves, among other things, express agreement or some new consideration. Wood v. Wood, 239 Ga. 120, 236 S.E.2d 68 (1977). To render agreement binding as accord and satisfaction requires meeting of minds as to subject matter. Fowler v. Gorrell, 148 Ga. App. 573, 251 S.E.2d 819 (1978). Execution of new agreement will itself amount to satisfaction only where expressly agreed by parties. Fowler v. Gorrell, 148 Ga. App. 573, 251 S.E.2d 819 (1978). When no agreement to settle all disputes arising from contract, satisfaction does not result; although money is demanded and received. Fowler v. Gorrell, 148 Ga. App. 573, 251 S.E.2d 819 (1978). It was error to find the existence of a

partnership between a business owner and the alleged partner, as the business was not included in any partnership agreement, described in any recorded statement, or acquired in a partnership name; furthermore, without any record evidence of a settlement agreement between the two, the court also erred in finding a valid accord and satisfaction. Yun v. Um, 277 Ga. App. 477, 627 S.E.2d 49 (2006). Even slight additional advantage or other new consideration to creditor may suffice. - Even slight additional advantage, or other new consideration to creditor, such as a waiver of defense by debtor, or debtor’s agreement to surrender possession of realty covered by security deed before the debtor is legally obliged to do so, in exchange for

promise by creditor that indebtedness shall thereby be discharged, when undertaking of debtor is fully performed and accepted, is good accord and satisfaction. Mortgage Purchase & Sales Co. v. Williamson, 55 Ga. App. 92, 189 S.E. 293 (1936). Payment of less than amount claimed may operate as accord and satisfaction when debt unliquidated. - Generally, an essential element to sustain accord and satisfaction of entire debt or disputed claim by giving of less sum of money than that claimed, and nothing more, is a bona fide dispute or controversy; but this rule does not apply when damages are unliquidated. Burgamy v. Holton, 165 Ga. 384, 141 S.E. 42 (1927). Permitting repossession under security agreement on condition that it extinguish debt, not accord and satisfaction. - If defendant permits repossession only on condition that it extinguish debt, this falls short of establishing an enforceable accord and satisfaction for it shows nothing more than attempted unilateral imposition, without consideration, of condition contrary to terms of original contract recognizing immediate right of repossession upon default. Barnes v. Reliable Tractor Co., 117 Ga. App. 777, 161 S.E.2d 918 (1968). Avoidance of accord and satisfaction on ground of fraud generally requires restitution. Interstate Life & Accident Co. v. Shedrick, 57 Ga. App. 382, 195 S.E. 456 (1938). Burden is on defendant to affirmatively establish existence of accord and satisfaction. Prater v. American Protection Ins. Co., 145 Ga. App. 853, 244 S.E.2d 925 (1978). Party pleading accord and satisfaction must show express agreement or new consideration. - Burden of proof of existence of accord and satisfaction lies with party

relying on doctrine which involves, among other things, express agreement or some new consideration. Fowler v. Gorrell, 148 Ga. App. 573, 251 S.E.2d 819 (1978). Parol evidence admissible as to understanding of parties concerning meaning of ‘‘every claim’’. - Check in final settlement of every claim subject to oral testimony as to understanding of parties concerning meaning of ‘‘every claim,’’ so as to make defense of accord and satisfaction a jury question. Fowler v. Gorrell, 148 Ga. App. 573, 251 S.E.2d 819 (1978). Delivery of loan collateral. - Borrower’s delivery to bank of vehicle servicing as collateral for loan did not constitute accord and satisfaction, even assuming that delivery was on express condition that delivery extinguished debt. Brewer v. Trust Co. Bank, 205 Ga. App. 891, 424 S.E.2d 74 (1992). Cited in Decatur Bank & Trust Co. v. American Sav. Bank, 166 Ga. 789, 144 S.E. 285 (1928); Wilder Bros. v. Montgomery, 51 Ga. App. 231, 179 S.E. 861 (1935); City of Eastman v. Georgia Power Co., 69 Ga. App. 182, 25 S.E.2d 47 (1943); McLendon v. Johnson, 69 Ga. App. 214, 25 S.E.2d 53 (1943); Rural Elec. Appliance Co. v. Joiner, 69 Ga. App. 353, 25 S.E.2d 428 (1943); Stein Steel & Supply Co. v. Briggs Mfg. Co., 110 Ga. App. 489, 138 S.E.2d 910 (1964); Epps Air Serv., Inc. v. Lampkin, 125 Ga. App. 779, 189 S.E.2d 127 (1972); McCullough v. Mobiland, Inc., 139 Ga. App. 260, 228 S.E.2d 146 (1976); Clark Equip. Credit Corp. v. Refrigerated Transp. Co., 148 Ga. App. 405, 251 S.E.2d 321 (1978); Sun Fed. Sav. & Loan Ass’n v. Manny, 156 Ga. App. 807, 275 S.E.2d 661 (1980); Rigdon v. Walker Sales & Serv., Inc., 161 Ga. App. 559, 288 S.E.2d 711 (1982); Carpet Transp., Inc. v. TMS Ins. Agency, Inc., 165 Ga. App. 734, 302 S.E.2d 421 (1983).

RESEARCH REFERENCES ALR. - Debtor’s waiver of, or refraining from exercising, right to resort to bankruptcy, or his insolvency, as consideration for release of all or part of liability, 108 ALR 656.

Payment of undisputed amount or liability as consideration for discharge of disputed amount or liability, 112 ALR 1219.