Birdsall v.

Saucier
Facts: Birdsall runs a reality business and helped Saucier find buyers for his
building. Saucier promised Birdsall 10% commission, but as the closing date
approached Saucier asked Birdsall to accept an alternate payment form they
would receive $29,500 and receive yearly payments for five years following the
sale. The added interest would be an additional $10,000 than what Birdsall initially
agreed to. Birdsall signed a promissory note/receipt saying commission paid in
full, yet Saucier made payments to Birdsall for 3 years and then payments
stopped.
Issue: Did Saucier breach his agreement with Birdsall?
Holding: No, by signing the promissory note saying commission paid in full
Birdsall had effectively signed away rights to the rest of his money.
Rationale:
- An accord is a contract between creditor and debtor for the settlement of a
claim by some performance by the other than that which is due. Satisfaction
takes place when the accord is executed
- When there is a good faith dispute about the existence of a debt or about the
amount is owed
- A lessor sum cannot be satisfaction for a greater sum
- A liquidated money demand may be discharged by the delivery of property in
payment thereof or by delivery of part money and party property; if the latter
is received by the creditor in full discharge of the indebtness, there is a good
accord and satisfaction. The relative value of the property is immaterial as
affecting the validity of the accord and satisfaction
- The acceptance, by a creditor, of the note of a third person, in satisfaction of
an existing debt, is an extinguishment of such original indebtedness, and
constitutes a good accord and satisfaction thereof, whether the note be for
the full amount of the debt, or for a lesser sum
- It was held that a note endorsed by a third person may be taken in accord an
satisfaction of a debt even when the note is for a lesser amount
The additional security which the creditor received by the endorsement
was a sufficient legal consideration for the discharge
- When Birdsall signed his receipt commission paid in full, there was accord
and satisfaction. Because of his he cannot now recover against the
defendants no matter how bad his bardain has turned out
Disposition: Judgment for defendants