Remedies for Debt Settlement: Raymond and Samantha Case

This essay discusses the possible remedies available to Raymond in a debt settlement case with Samantha. It explores the legal position if Raymond requested a £400 payment from Samantha as full and final settlement. Additionally, it provides advice for Samantha on how to handle the situation.

Business Law and Ethics INDIVIDUAL
ESSAY

Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................4
1. Advise Raymond on possible remedies available to him........................................................4
2. Samantha had paid Raymond £200 three weeks earlier..........................................................5
3. What would be the legal position if Raymond had requested a £400 payment from
Samantha as full and final settlement?........................................................................................5
4. What advice do you have for Samantha?................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Debt settlement is the place where a loan boss gives his/her agree to forego a specific level of the
extraordinary sum. He consents to settle at a diminished last figure of the aggregate sum due.
The Debt Settlement Agreement is a composed understanding between an account holder and
bank where the borrower consents to pay the leaser the extraordinary obligation because of him.
It is otherwise called the Debt Compromise Agreement. This arrangement can be lawfully
implemented by printing it on a non-legal stamp paper, fastening the stamp obligation according
to the state laws, with the marks of both the gatherings consenting to it.
In this project essay; case of Raymond who is creditor and Samantha as debtor has been
considered to reflect the rules and regulations related to remedies available for both debtor and
creditor.

Part 1
1. Advise Raymond on possible remedies available to him.
The possible remedies available to Raymond are based on fact that whether the offer of full
settlement by Samantha has been accepted by Raymond or not. In case of acceptance of offer of
full settlement of £800 by Raymond; there’s no remedies left for claiming rest of the payment by
him from Samantha. But if the offer is not accepted; then Raymond has an opportunity to claim
remaining amount debt from Samantha.
Conditions for acceptance of an offer:
Raymond has collected check from Samantha amounted £200; the offer for full settlement will
not be accepted until he deposit the cheque into bank and payment is accepted by Samantha. If
the cheque has been deposited by Raymond and Samantha approves it; then there is no remedies
left for Raymond. He will not left with any choice but to accept £200 as fully closing the account
of Samantha having payable amount of £800; which is loss to Raymond.
Full and Final Settlement" is a term usually utilized in settlement arrangements to mean the goal
of all issues engaged with a contest and the gatherings will have no different cases against one
another.
With regards to an obligation, borrowers once in a while attempt to take care of obligations in
under everything by "full and last settlement". "Account holder" signifies any individual who
owes cash, and "lender" signifies any individual who is owed the cash. In the flexibly of products
and ventures, clients ordinarily owe cash to providers, yet the jobs are at times turned around (for
instance, on account of discounts), and the connection among borrower and bank may emerge in
numerous different cases.
In the event that an indebted person can't support an obligation, it might offer to the bank a single
amount as "full and last repayment" of the whole equilibrium the account holder owed on the
obligation. As a trade-off for a one-time installment, the bank would consent to discount the
excess obligation. Keeping the cash would mean the lender would lose the case to the leftover
obligation.

2. Samantha had paid Raymond £200 three weeks earlier.
No, the answer will be same as in this case, Raymond is legally bound to complete the work for
Samantha in £200. The amount received through cheque three weeks earlier will be considered
as advance payment and it will be partially settled in the report. It is not claimable in future but it
will affect the ability of Samantha to obtain credit next time.
3. What would be the legal position if Raymond had requested a £400 payment
from Samantha as full and final settlement?
Raymond has legal right to bind Samantha to pay £400 as full settlement amount. Samantha has
to pay the due amount or settlement money to Raymond. The utmost remedies available to
Samantha are; she can take time to pay £400 as full settlement. She’s legally obliged to settle
demanded amount by Raymond.
An indebted person here and there attempts to settle an obligation for not exactly everything by
making an installment "in full and last repayment", or with words to a similar impact. The loan
boss might want to keep the part installment and press for installment of the rest, however fears
that keeping the installment may mean losing its entitlement to guarantee more.
As the option to guarantee the equilibrium can be lost by delay, the bank should act rapidly to
secure its position. We offer a few proposals, however the lender's best strategy will rely upon
current realities of every circumstance. A significant factor is whether installment was gotten by
bank installment or with a money order. When a bank installment is started, the paying party
can't stop it, and the beneficiary can't try not to get it. The lender who has gotten installment
without making any move to do so may even now have the option to force its own terms,
however the position may not be clear.

In the wake of getting a check, the beneficiary can pick whether to acknowledge the installment
by introducing the check for installment. Furthermore, until the check is introduced and cleared,
the payer can stop installment. This typically offers the bank a chance to acknowledge the cash
on its own terms.
A "no waiver" condition, for example, Standard provision, Waiver typically looks to build up (in
addition to other things) that the leaser can acknowledge part execution without losing its
different rights. Indeed, even where present and appropriate to current realities of the case, this
statement isn't the finish of the enquiry since contracting gatherings can generally change what
they have concurred, by shifting the agreement or by estoppels. The statement is as yet pertinent,
nonetheless, as one factor impacting the response to later inquiries in this arrangement.
An offer might be acknowledged by words or conduct, and an offeror may distinguish explicit
words or activities required. Quiet and inaction, then again, are not ordinarily acknowledgment
and an account holder can't make an agreement by telling the bank that quietness comprises
acknowledgment.
Activities that may show acknowledgment, (for example, keeping the cash) may not do as such
whenever joined by clear words dismissing the terms on which it is advertised. It is an issue of
reality whether anytime the loan boss has acknowledged or dismissed the offer. When
acknowledgment or dismissal has occurred, later activities can't restore the offer or fix the
acknowledgment.
On the off chance that a bank consents to deliver an account holder from installment, the lender
may then be estopped from asserting the installment, in any event, when there is no thought to
settle on that arrangement authoritative. An estoppel emerges if the indebted person has
depended on the delivery to its disservice, with the goal that it is out of line to permit the lender
to backpedal on what it has said and done.
4. What advice do you have for Samantha?
Samantha should make sure that the cheque carrying payment of £200 mentioned that it is
against full and final settlement of the debt. In the absence of this statement, creditor can claim
for further money from Samantha. The settlement note should be in written form and must agree
by creditor. In the case of cheque, creditor will accept the offer by depositing the cheque into

bank for sanctioned of payment. The agreement with the final settled amount should be kept by
Samantha to present it whenever there’s dispute in the future.
A full and last settlement email/letter/understanding are a legitimately authoritative arrangement
between two gatherings to settle a question. One gathering will ordinarily pay the other party a
settlement installment as a trade-off for the other party to forgo any cases in the court.
The gatherings are normally needed to keep the conditions of the agreement private, for example,
the settlement sum and the conditions encompassing the question. It is additionally regular to
incorporate provisos that restrict either party from offering any harsh remarks on the other.
Notwithstanding settling questions under common prosecutions, settlement arrangements are
additionally normally utilized in the work setting to determine representatives' cases against
managers. A representative or laborer may consent to forgo/not to make a case against a business
in court or the work council as a trade-off for a severance installment.
The consent to postpone all real and possible legal (normally custom-based law) cases should be
set out in a composed settlement arrangement that will be customized to explicit representatives
and their own conditions. They should incorporate a waiver of explicit cases that the worker has
or may have later on. There are sure legal prerequisites that a settlement understanding for work
must meet to be legitimate. Hence care should be taken when drafting such arrangement and
counsel your nearby work legal advisor if vital.
Conclusion
The explanation lies in the guidelines on thought. A borrower can't give thought for the
repayment by paying piece of an obligation, which is close to it is will undoubtedly do. Yet, in
the event that another person, who isn't will undoubtedly pay, consents to pay even piece of the
obligation that would be acceptable thought for delivering the account holder from the
obligation.
Paying piece of an undisputed case is no thought for surrendering the equilibrium of the case, on
the grounds that the indebted person has sat idle however what it was at that point legally bound
to do. Then again, surrendering even a frail contention would be thought for a settlement.

References
Rahmawati, R., 2019. COMPARISON OF LAWS FOR SETTLING DEBT REMAINING
BANKRUPTCY BETWEEN INDONESIAN AND DUTCH COUNTRIES. Jurnal
Notariil, 4(1), pp.18-26.
Chitoshvili, T., 2017. Acknowledgement of the Existence of Debt in the Light of Doctrine and
Judicial Practice. TSU Journal of Law, (1).
Vladetić, S.C., 2017. The Rights of the Creditor in the Case of an Unpaid Debt at Fiducia Cum
Creditore. Ius Romanum, (2), pp.501-510.
Chitty on contracts, 2018; Available online through:
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