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.
- Category: Contracts
- Subcategory: Releases
- Date:
- State: California
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.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
