Legal Question in Credit and Debt Law in Texas

Settlement of Debt

A = Creditor

B = Debtor

''A'' submits a request for payment of ''X'' dollars.

''B'' rejects the amount, claiming that only ''X'' minus ''Y''

dollars is the amount owed.

If ''B'' sends ''A'' a check for ''X minus Y'' dollars with a statement ''Acceptance of this check is acceptance as payment in full'' and the check is cashed, is the debt paid?


Asked on 5/22/03, 1:12 am

2 Answers from Attorneys

Nile Copeland Copeland Law Group, PLLC

Re: Settlement of Debt

This may help:

www.capitol.state.tx.us/statutes/bc/bc0000300.html#bc037.3.311

Look at � 3.311. Accord and Satisfaction by Use of Instrument

You should speak with an attorney or a law school professor to explain this in full.

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Answered on 5/22/03, 8:36 am
Peter Bradie Bradie, Bradie & Bradie

Re: Settlement of Debt

Possibly. It depends on whether the dispute is legitimate or not. Arbitrarily saying that B only owes A $X-Y doesn't necessarily make it a legitimate dispute. B has to also show A why B is entitled to $Y offset in order to make the dispute legitimate.

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Answered on 5/22/03, 10:53 am


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