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.

Question

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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.

Many Jurisdictions Have Passed Legislation Providing That When a Creditor