2006 Code of Virginia § 8.3A-311 - Accord and satisfaction by use of instrument

8.3A-311. Accord and satisfaction by use of instrument.

(a) If a person against whom a claim is asserted proves that (i) that personin good faith tendered an instrument to the claimant as full satisfaction ofthe claim, (ii) the amount of the claim was unliquidated or subject to a bonafide dispute, and (iii) the claimant obtained payment of the instrument, thefollowing subsections apply. For purposes of this subsection, a person doesnot act in good faith when tendering a check in full satisfaction of anobligation under a loan if (i) such check is for less than the amount dueunder the terms of the loan agreement and (ii) such check is tendered to aperson without knowledge of a dispute concerning the loan.

(b) Unless subsection (c) applies, the claim is discharged if the personagainst whom the claim is asserted proves that the instrument or anaccompanying written communication contained a conspicuous statement to theeffect that the instrument was tendered as full satisfaction of the claim.

(c) Subject to subsection (d), a claim is not discharged under subsection (b)if either of the following applies:

(1) The claimant, if an organization, proves that (i) within a reasonabletime before the tender, the claimant sent a conspicuous statement to theperson against whom the claim is asserted that communications concerningdisputed debts, including an instrument tendered as full satisfaction of adebt, are to be sent to a designated person, office, or place, and (ii) theinstrument or accompanying communication was not received by that designatedperson, office, or place.

(2) The claimant, whether or not an organization, proves that within ninetydays after payment of the instrument, the claimant tendered repayment of theamount 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 astatement complying with paragraph (1) (i).

(d) A claim is discharged if the person against whom the claim is assertedproves that within a reasonable time before collection of the instrument wasinitiated, the claimant, or an agent of the claimant having directresponsibility with respect to the disputed obligation, knew that theinstrument was tendered in full satisfaction of the claim.

(1992, c. 693; 2006, c. 624.)