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Can you summarize IACO 554.3311?
UNIFORM COMMERCIAL CODE > Accord and satisfaction by use of instrument.
Short Summary
This legal provision, found in the Iowa Code under the Uniform Commercial Code, governs the concept of accord and satisfaction by use of an instrument. It outlines the conditions under which a person against whom a claim is asserted can prove that they tendered an instrument in good faith as full satisfaction of the claim. If the claim amount was unliquidated or subject to a bona fide dispute, and the claimant obtained payment of the instrument, certain subsections apply. The claim may be discharged if the instrument or accompanying written communication contained a conspicuous statement indicating it was tendered as full satisfaction of the claim. However, there are exceptions where the claim is not discharged, such as when the claimant, if an organization, proves that they sent a conspicuous statement to the person against whom the claim is asserted, designating a specific person, office, or place for communications concerning disputed debts. Additionally, if the claimant tendered repayment of the instrument amount within ninety days after payment, the claim is not discharged. However, this exception does not apply if the claimant is an organization that sent a statement complying with the previous exception. Finally, the claim is discharged if the person against whom the claim is asserted proves that the claimant, or an agent with direct responsibility for the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim before collection was initiated.
Whom does it apply to?
Persons against whom a claim is asserted and claimants
What does it govern?
Accord and satisfaction by use of instrument
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Iowa