X owed Y a debt in the amount of $1,000. The debt was payable on June 1 st . In Ontario, and in Western Canada under statute law, if Y accepted the lesser sum as payment in full on the due date, he would not be entitled to collect the remaining $100.

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Constance Chaplin · Accepted Answer

Final Answer : True, Explanation :  Under the common law principle of accord and satisfaction, if a debtor offers a lesser amount as full payment on the due date and the creditor accepts it, the agreement is binding, and the creditor cannot later claim the remaining amount. This principle is recognized in Ontario and Western Canada through statute law, which codifies this common law principle, making the acceptance of a lesser sum as full payment legally binding and preventing the creditor from pursuing the remaining balance.

X owed Y a debt in the amount of $1,000. The debt was payable on June 1^st. In Ontario, and in Western Canada under statute law, if Y accepted the lesser sum as payment in full on the due date, he would not be entitled to collect the remaining $100.

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Related questions

X owed Y a debt in the amount of $1,000. The debt was payable on June 1st. In Ontario, and in Western Canada under statute law, if Y accepted the lesser sum as payment in full on the due date, he would not be entitled to collect the remaining $100.

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. In Ontario, and in Western Canada under statute law, if Y accepted the lesser sum as payment in full on the due date, he would not be entitled to collect the remaining $100.