Introduction to this document
Compromise agreement
When trying to resolve a dispute, there’s often a need to be
pragmatic and agree a compromise solution. Use our agreement
to achieve a binding settlement.
Advice
Under English law, where a debt is owed, payment of a lesser amount isn’t seen as binding on
the creditor, unless there’s either been a dispute or there’s been a fresh element introduced,
e.g. different place of payment, different time etc.
Tip
To avoid disputes over what’s binding and what isn’t, make sure that if you’re looking to enter into
a compromise agreement, you draw up a deed. This will avoid the issues of contract law applying
to what you’ve agreed.
Document
31 Oct 2014
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