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Texas Business & Commerce Code - Section 3.311. Accord And Satisfaction By Use Of Instrument

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 3.311. Accord And Satisfaction By Use Of Instrument

§ 3.311. ACCORD AND SATISFACTION BY USE OF 
INSTRUMENT.  (a) Subsections (b)-(d) apply if a person against whom 
a claim is asserted proves that:
		(1)  that person in good faith tendered an instrument 
to the claimant as full satisfaction of the claim;
		(2)  the amount of the claim was unliquidated or 
subject to a bona fide dispute;  and
		(3)  the claimant obtained payment of the instrument.                         
	(b)  Unless Subsection (c) 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), a claim is not discharged 
under Subsection (b) if either of the following applies:
		(1)  The claimant, if an organization, proves that:                           
			(A)  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
			(B)  the instrument or accompanying communication 
was not received by that designated person, office, or place.
		(2)  The claimant, whether or not an organization, 
proves that within 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 subdivision does 
not apply if the claimant is an organization that sent a statement 
complying with Subdivision (1)(A).
	(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 Acts 1995, 74th Leg., ch. 921, § 1, eff. Jan. 1, 1996.            

Last modified: August 11, 2007