Indiana § 26-1-3.1-311 Accord and satisfaction by use of instrument

Indiana Statutes

§ 26-1-3.1-311 — Accord and satisfaction by use of instrument

Indiana § 26-1-3.1-311

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 3.1Negotiable Instruments

This text of Indiana § 26-1-3.1-311 (Accord and satisfaction by use of instrument) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-3.1-311 (2026).

Text

(a)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; the following subsections apply.

(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)wit

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(a) 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;
the following subsections apply.
(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 ninety (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.