X owed Y a debt in the amount of $1,000. The debt was payable on June 1 st . If X offered Y the sum of $900 on the due date as payment in full, at common law, Y would be entitled to collect the remaining $100 even though he accepted the lesser sum as payment in full on the due date.

Question

PRANSHU MUTREJA · Accepted Answer

Final Answer : True, Explanation :  At common law, the acceptance of a lesser sum on the due date does not discharge the debtor from the obligation to pay the full amount unless there is some form of new consideration or a different agreement made.

X owed Y a debt in the amount of $1,000. The debt was payable on June 1^st. If X offered Y the sum of $900 on the due date as payment in full, at common law, Y would be entitled to collect the remaining $100 even though he accepted the lesser sum as payment in full on the due date.

Definitions

Learning Objectives

Learning Objectives

Related questions

X owed Y a debt in the amount of $1,000. The debt was payable on June 1st. If X offered Y the sum of $900 on the due date as payment in full, at common law, Y would be entitled to collect the remaining $100 even though he accepted the lesser sum as payment in full on the due date.

Definitions

Learning Objectives

Learning Objectives

Related questions

X owed Y a debt in the amount of $1,000. The debt was payable on June 1^st. If X offered Y the sum of $900 on the due date as payment in full, at common law, Y would be entitled to collect the remaining $100 even though he accepted the lesser sum as payment in full on the due date.