Opinion ID: 846741
Heading Depth: 1
Heading Rank: 4

Heading: accord and satisfactions

Text: An accord and satisfaction is an affirmative defense [3] grounded in contract principles. An accord is a contract and requires a meeting of the minds of those who enter into it. Fritz v. Marantette, 404 Mich. 329, 334, 273 N.W.2d 425 (1978), quoting Gitre v. Kessler Products Co., 387 Mich. 619, 624, 198 N.W.2d 405 (1972). A satisfaction is the discharge of the debt occurring after acceptance of the accord. [4] Cases in which an accord and satisfaction defense is relevant involve a good-faith dispute about an unliquidated amount owing under a contract. One party makes a tender in satisfaction of the claim (an accord). The other accepts or rejects the accord. If the second party accepts the tender, there is both an accord and a satisfaction. See Nationwide Mut. Ins. Co. v. Quality Builders, Inc., 192 Mich. App. 643, 647, 482 N.W.2d 474 (1992), citing Shaw v. United Motors Products Co., 239 Mich. 194, 214 N.W. 100 (1927). In this Court's handling of common-law accord and satisfaction, two lines of cases developed. The first holds that whether there was a sufficient meeting of the minds for an accord and satisfaction is a question for the jury. [5] The second holds that the required meeting of the minds is implied as a matter of law by the acceptance of the offer. The fact that the recipient altered or crossed out the accord is irrelevant. [6] As in this case, the affirmative defense of accord and satisfaction often involves the use of a check. A check is a negotiable instrument entered into between the maker and the payee. Huler v. Nasser, 322 Mich. 1, 6, 33 N.W.2d 637 (1948). As will be demonstrated later, when the Legislature enacted MCL 440.3311, it followed the second line of cases. This effectively repudiates any application of the first line of cases to accord and satisfactions involving negotiable instruments, leaving MCL 440.3311 to control all accord and satisfactions involving negotiable instruments.