Accord and satisfaction is defined as an agreement to discharge a claim whereby the parties agree to give and accept something, usually less than what is owed. Any claim based on an express or implied contract may be the subject matter of an accord and satisfaction. Since accord agreement is transacted on a new agreement substituting the old one, accord and satisfaction must have all essential elements of a contract. A valid accord and satisfaction requires four elements such as, proper subject matter, competent parties, meeting of the minds of the parties and consideration. An accord can be either an express agreement or may be implied, in accordance with the circumstances surrounding the transaction. Since accord and satisfaction is an affirmative defense, the party raising accord and satisfaction must specifically plead it.