§12A-3-311. Accord and Satisfaction by Use of Instrument.
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ACCORD AND SATISFACTION BY USE OF INSTRUMENT
(a)If a person against whom a claim is asserted proves that
(i)that 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, the following subsections apply.
(b)Unless subsection
(c)of this 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.
(c)Subject to subsection
(d)of this section, a claim is not discharged under subsection
(b)of this section if either of the following applies:
(1)The claimant, if an organization, proves that
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
(ii)the instrument or accompanying communication was
not received by that designated person, office or
place; or
(2)The claimant, whether or not an organization, proves
that within ninety
(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.
(d)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. Added by Laws 1991, c. 117, § 62, eff. Jan. 1, 1992.