Throughout the course a number of case summaries will be due. These summaries (100-150 words each) will state in your own words the factual issue that led the parties to court, the judge's decision, and the reasoning utilized to reach that decision

Case No. 51 ACCORD AND SATISFACTION

Century 21 Kaaterskill Realty v. Grasso Appellate Division, Third Department 124 A.D.2d 316,508 N.Y.S.2d 99 (1986)

FACTS: Defendant Savino Grasso (Grasso) owned real property he wanted to sell. He hired plaintiff Century 21 Kaaterskill Realty (Century 21) as the broker for the sale and agreed to pay Century 21 10% of the sale price as a commission. The property sold for

$82,000.00 and Century 21 sought payment from Grasso of $8,200.00. Grasso's attorney sent a check to Century 21 for $6000.00 and included the following notation on it: "In full accord and satisfaction for any real estate commission claimed by Century 21 against ... Grasso". An officer of Century 21 endorsed and deposited the check.

In this action, Century 21 sued for the unpaid balance of the commission-$2200.00. Grasso defended on the basis that an accord and satisfaction occurred when Century 21 deposited the check.

ISSUE: Where a creditor cashes a check presented by a debtor as full payment of the debt, the amount of which is not disputed (liquidated), can the creditor pursue the debtor for the difference between the amount of the check and the amount the debtor owes?

DECISION: Yes, judgment for Century 21.

REASONS: Accord and satisfaction applies only to a situation where a good- faith dispute exists about the amount owed by the debtor. Where, as here, the amount owed is not disputed, the debt will not be satisfied by payment of less than the amount the parties have agreed is owed.

* * * QUESTIONS * * *

What is an accord?

What is a satisfaction?

Why did an accord and satisfaction not result in this case?

Would the outcome of this case have been different if the parties had not agreed on the amount of the commission owed by Grasso to Century 21?