Idaho Law Blog
In Idaho, an accord and satisfaction is a method of resolving a disputed claim between two parties. See Idaho Code § 28-3-310. Here’s a simple example of how it works. Let’s say a painter agrees to paint a homeowner’s living room for $500. After finishing the work, the painter sends the homeowner a bill for $500. The homeowner responds with a letter stating he doesn’t owe anything because the paint job is terrible and he had to hire a second painter to come in and do it right. In reply, the painter threatens to sue the homeowner if he doesn’t get full payment.
Let’s suppose that the homeowner is stressed about the dispute and the possibility of being sued, so he sends the painter a check for $250 with large, red print on face of the check stating, “Payment in full for painting my living room!” The painter receives the check, decides that $250 is better than trying for $500 in court, so he cashes the check. When he does so, the matter is legally resolved. The parties have performed an accord and satisfaction.