Accommodation Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Accommodation, written in plain English, along with examples of how it is used.
What is Accommodation?
n. an act of help done towards a person, by (usually, a merchant for the convenience of other) by accepting or endorsing his paper, or by lending him his notes or bills.Under US contract laws it stands for delivery of nonconforming goods meant as a partial performance of a contract for the sale of goods.
History and Meaning of Accommodation
Accommodation is a term that has been used for centuries, with its usage originating from the Latin word "accommodatus," which means "adjusted." In legal terms, the definition of accommodation refers to an act of help done towards someone by accepting or endorsing their paper, lending them notes or bills, or delivering nonconforming goods as a partial performance of a contract for the sale of goods. This type of assistance is often provided by merchants to increase business and bring in new customers.
Examples of Accommodation
A merchant accepting a check from a new customer even though the check is post-dated, to help the customer with a transaction.
A bank lending money to a customer who doesn't meet the usual criteria for a loan, to help them in a time of need.
A landlord agreeing to lower the rent for a tenant who is going through a tough financial situation.
A supplier delivering goods that do not fully meet the requirements specified in the contract as a partial performance, to accommodate the buyer's specific requests.
Legal Terms Similar to Accommodation
Accord and Satisfaction: A legal contract that states that one party agrees to pay a certain amount of money or goods to the other party in exchange for the release of certain claims.
Collateral: A property or asset that is pledged by a borrower to a lender as security for a debt or loan.
Fraudulent conveyance: A transfer of property or assets made with the intent to delay, hinder, or defraud creditors.