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I don’t understand the following paragraph
“If X arranges with creditors that they will each accept part-payment in full entitlement, that is bargain between the creditors X has given no consideration but he can hold the creditors individually to the agreed terms”
***Debtor is denoted by X in that paragraph.I suppose if you get down to basics you could claim:
a debt is owed
the borrower breaches the contract by refusing to pay
instead the borrower offers part payment
and the creditors accept that revised offer in full settlementThe creditors had available the possibility of taking legal action to pursue their debts in full but chose instead to accept the part payment offer
That offer of part payment that has been made and accepted by the creditors supersedes the original debt
OK?
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