Accord and satisfaction is a legal agreement to settle a debt or dispute by accepting a different amount or performance than originally agreed.

It has two parts:

Accord → The new agreement to settle the dispute

Satisfaction → The actual payment or performance of that new agreement

For example:
If a person owes ₹50,000 but the creditor agrees to accept ₹40,000 as full settlement, and ₹40,000 is paid, the debt is fully cleared.

In simple terms, accord and satisfaction means settling a dispute by agreeing to and completing a new arrangement.