Accord and satisfaction is a legal concept that enables one party to a contract to fulfill their contractual duty differently than originally agreed, provided the other party consents. This concept involves two components: an accord and a satisfaction.
An alternative to bankruptcy, in which creditors agree to accept partial payment in full settlement of their claims. Most often seen in failures of small, unincorporated businesses, whose creditors reason that they will benefit more in profits on future sales to a going concern than they would on liquidation.
Default in the context of accounting refers to the failure to fulfill a contractual or other legal obligation, including settling debts, defending legal proceedings, or submitting and paying Value Added Tax (VAT) on time.
A general lien is a legal claim on all the property owned by the debtor, as opposed to a specific property lien, which targets particular assets.
Legal tender refers to the money that must be accepted in discharge of a debt. It can be limited or unlimited depending on the specified limits of payment.
A liquidated debt is a debt that is undisputed both in terms of its existence and the exact amount owed.
A Mechanic's Lien is a legal claim against a property that has been remodeled or improved. It is filed by contractors, subcontractors, or suppliers who claim they have not been paid for their work or materials. The lien ensures that these entities receive payment for their contribution to the construction or repair of buildings or other structures. This lien remains in effect until the debt is settled, and in certain circumstances, it may provide priority over other creditors in the event of liquidation or sale of the property.
A moratorium provides critical financial relief in situations where debt repayment is hindered by economic or market crises, offering time for debtor recovery and maintaining market stability.
The net amount received by a former owner upon selling an asset after covering transaction costs, settling any remaining debt, and potentially paying income taxes.
Satisfaction of Debt refers to the release and discharge of an obligation where the performance is executed to fulfill a debt.
