Asked by Matthew Payeff on Jun 11, 2024
Verified
Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt, and has actually received the lesser sum, the creditor is not bound by the agreement and can sue for the difference.
Creditor
An individual, corporation, or other entity that is owed money by another entity, known as the debtor.
Legislation
Laws enacted by a government or legislative body to regulate, authorize, sanction, grant, declare or restrict.
Debt
An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.
- Familiarize yourself with the core concepts of offer, acceptance, and consideration in contract development.
Verified Answer
SE
Shaun EdwardsJun 14, 2024
Final Answer :
False
Explanation :
When a creditor agrees to accept a lesser sum in full satisfaction of a debt and actually receives that sum, the agreement is generally binding, and the creditor cannot later sue for the difference. This is based on the principles of accord and satisfaction in contract law.
Learning Objectives
- Familiarize yourself with the core concepts of offer, acceptance, and consideration in contract development.
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