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Nevada Law Library

Accord and Satisfaction

In Nevada, the elements for an accord and satisfaction are:

1.         A person against whom a claim is asserted and who has a bona fide dispute over an unliquidated amount;

2.         Proves a good faith tender of an instrument to the claimant in full settlement of the entire disputed amount;

3.         An understanding by the creditor of the transaction as such, and acceptance of the payment.  (There must be a meeting of the minds with regard to a resolution of the claim); and

4.         The claim is discharged.

NRS 104.3311; Pierce Lathing Co. v. ISEC, Inc., 114 Nev. 291, 956 P.2d 93 (1998); Walden v. Backus, 81 Nev. 634 (1965) (“Accord” is an agreement whereby one of the parties undertakes to give or perform, and the others to accept, in satisfaction of a claim, liquidated or in dispute, and arising either from contract or from tort, something other than or different from what s/he is, or considers himself/herself, entitled to); Mountain Shadows v. Kopsho, 92 Nev. 599 (1976).