How is 'accord and satisfaction' typically achieved?

'Accord and satisfaction' is a legal concept in contract law that refers to a settlement of a dispute where parties agree to an alternative performance than what was originally stipulated in the contract. Essentially, it entails a modification of the obligations, where one party fulfills a different performance input that is accepted by the other party as satisfying their original contractual obligations.

This process typically involves the agreement of the parties involved to accept a different kind of performance, as opposed to what was initially required. For instance, if a contractor fails to deliver a specific type of materials on time, the parties might agree that delivering a different set of materials or some alternative solution will suffice to satisfy the contract terms.

In this way, 'accord' represents the new agreement on the terms of performance, while 'satisfaction' refers to the fulfillment of that new agreement. When the alternative performance is rendered and accepted, the original contractual obligation is considered fulfilled, which resolves the disagreement between the parties.

The other choices focus on various actions that can occur in contract disputes, like financial restitution, modifications of contract terms, or mutual termination, but they do not encapsulate the essence of 'accord and satisfaction' — which specifically hinges on achieving closure through an alternate performance arrangement.