Satisfaction Of Debt Agreement

In accordance with Cal Civ § 1526, where a claim is contested or unscealed and a cheque or change is offered by the debtor to settle the claim and the words “full payment” or similar words on the cheque or project are destroyed, acceptance of the cheque or change does not constitute agreement and satisfaction when the creditor protests against the acceptance of the offer in full payment, by deleting or deleting this notation, or if the acceptance of the test or design was accidental or without knowledge of the notation. Payment is the debtor`s performance of a financial obligation through the provision of a certain amount of money or the equivalent of a specified amount. Delivery may be actual or constructive and takes place for the purpose of drawing lots for an obligation. Payment requires delivery by the debtor and acceptance by the creditor, both for common purposes. Parnell v. Sherman, 899 S.W.2d 900 (MB. Ct. App. S.D. 1995) Another example would be that a lender agrees to lend $100,000 at 5.0% interest for 30 years and all loan documents are prepared for a loan at an interest rate of 6.0% for 30 years. If the lender agrees to reduce closing costs by an additional $1,000 and borrowers agree, there has been agreement and satisfaction. If the borrowers subsequently file a lawsuit for breach of contract, the transaction (offer and acceptance of the $1000) constitutes an agreement and satisfaction and is a valid defense against the borrower`s lawsuit. Under California Civil Code Section 1521, an agreement is an agreement to accept something else or less in the event of termination of an obligation that the person who agrees to accept.

Cal Civ Code§ 1522 states that, since the parties to an agreement are required to execute it, it has no obligation to get out of it until it is fully executed. in point U.C.C. § 3-311 (b) if no other law is applicable, the claim is satisfied if the person against whom the claim is invoked demonstrates that the instrument or an accompanying written notification contained a striking statement that the instrument was offered to fully satisfy the claim. If the parties intend that a new agreement, although in execution only, immediately complies with the existing obligation, such an agreement is called a replacement agreement. In situations where “. full performance of the revised contractual conditions is necessary to remove or satisfy the rights arising from an old contract; the revised contract is called performance agreement and satisfaction, while, in cases where the reciprocal commitments are held by themselves in a revised contract in order to satisfy all the requirements arising from the old contract; the revised contract is called a replacement contract….