What legal term describes an agreement made to settle a dispute under the terms of a prior contract?

The legal term that describes an agreement made to settle a dispute under the terms of a prior contract is "accord and satisfaction." This concept involves two main components: the accord, which is the new agreement reached by the parties to settle the dispute, and the satisfaction, which refers to the execution or performance of that agreement.

In this context, when one party believes the other has not fulfilled their obligations under an existing contract, they may negotiate a new agreement (the accord) that specifies different terms or actions that will resolve the original dispute. Once these new terms are met, the dispute is considered satisfied, thereby discharging the initial contract obligations.

Understanding accord and satisfaction is crucial in the field of funeral service and other contracts to ensure that all parties are aware of their rights and obligations and how disputes can be efficiently resolved without further legal action. This concept is particularly relevant in scenarios like adjusting terms for service or payments related to funeral services, allowing for a formal resolution that is legally binding.