Also known as: satisfaction doctrine · satisfaction
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A principle under which an obligee's acceptance of a performance offered by the obligor that differs from what is due discharges the original duty.
A principle under which an obligee's acceptance of a performance offered by the obligor that differs from what is due discharges the original duty.
Demetrius Douglas owed a lender a fixed sum under a promissory note. After receiving an inheritance, Douglas tendered a different asset portfolio whose value the lender accepted in full settlement. The lender executed a release discharging the original note obligation.
Daniel Diaz owed Dakota Industries delivery of 500 units of custom parts under a supply contract. Diaz offered and the company accepted 400 units plus a cash payment equal to the value of the remaining 100 units. The acceptance of this substituted performance discharged Diaz's original delivery obligation.
A rule providing that an inter vivos gift made by a testator to a devisee or a member of the devisee's family adeems the devise in whole or in part when the testator indicated in a contemporaneous writing or the devisee acknowledged in writing that the gift was intended to operate as satisfaction.
Dorothy Daniels executed a will devising 1,000 shares of a particular stock to her niece Deborah Dunn. Two years later Daniels gave Dunn 600 shares of the same stock and signed a contemporaneous writing stating the gift was in partial satisfaction of the devise. At Daniels's death the remaining 400 shares passed under the will.
A rule providing that an inter vivos gift made by a testator to a devisee or a member of the devisee's family adeems the devise in whole or in part when the testator indicated in a contemporaneous writing or the devisee acknowledged in writing that the gift was intended to operate as satisfaction.
Each sense below has its own examples, sources, and questions.
Devon Drake owed Duarte Shipping delivery of specialized equipment under a supply contract. Drake tendered substitute goods plus a cash adjustment that Duarte accepted in full satisfaction. Duarte could not thereafter enforce the original delivery obligation.
Drake Logistics owed monthly equipment deliveries under a long-term supply contract. The obligee accepted a cash payment equal to the value of the remaining deliveries plus substitute goods. The acceptance discharged the original delivery duty.
Yes, when the obligee accepts a performance offered by the obligor that differs from what is due, the original duty is discharged under the doctrine.
Acceptance discharges the duty once the obligee receives and retains the different performance offered by the obligor in full settlement of the original obligation.
Diane Dawson's will left her son $75,000. During her lifetime Dawson transferred $30,000 to the son and obtained his signed acknowledgment that the transfer was in partial satisfaction of the devise. At Dawson's death the son received only the remaining $45,000 under the will.
The doctrine applies only if the will itself provides for deduction of the gift, the testator made a contemporaneous writing declaring the gift is in satisfaction, or the devisee acknowledged in writing that the gift operates as satisfaction.
Satisfaction applies when a testator makes an inter vivos gift intended to replace a devise, whereas extinction applies when the specific property is no longer in the estate at death for reasons unrelated to intent.
…there is a reasonable possibility that such release may render it substantially less likely that plaintiff will obtain satisfaction of any judgment secured. If such petition shall not be granted, or if no such petition shall be filed, such property shall remain subject to seizure and may be sold to satisfy any judgment…