How Do I Get a Release for a Settlement of a Debt?
Full Question:
I recently was asked to obtain some live sharks for a client who was using them for an awards show (as a display). Some of the sharks died during the holding period and the customer was not able to utilize all of the sharks they paid for. The customer wants to accept a certain dollar amount ($11,400.00) as full settlement from me rather than sue me for the $26,000.00 they believe I owe them for their losses. While I dispute the $26,000.00 figure I would like to settle this with them but want a form that will prevent them from coming after me for any more money after I pay the $11,400.00. Basically a complete release they would have to sign. There are 3 partners in their business so I would need a form to accommodate all three partners and myself of course.
06/09/2010 |
Category: Contracts ยป Releases |
State: California |
#22355
Answer:
In some cases, a debtor may be able to negotiate a settlement with the creditor, although this is more difficult once a suit has been filed. In some cases, the creditor may settle for a lesser amount, since a promise to pay something is better than collecting nothing. These types of agreements are called an accord and satisfaction. If it is possible, a debtor should get a release included in such an agreement so that the creditor may not pursue the full balance of the debt claimed.
