Civil Engineering Reference
In-Depth Information
in full and final settlement. The Court of Appeal held that the cheque was not accepted in
full and final settlement, and therefore the builders were entitled to recover the balance.
Thecourtsaid:'Ifthecreditor attheverymoment ofpayinginthechequemakesclear that
he is not assenting to the condition imposed by the debtor, how can it be said that, object-
ively, he has accepted the debtor's offer.'
However, the comment applies to a situation where the debt is indisputable. Take as an
exampleagenuinedisputeinwhichonepartysaysitisowed£500andtheotherarguesthat
itowesnothing:Anofferinfullandfinalsettlement bytheallegeddebtorof£200whichis
accepted by the creditor will not enable the creditor to return later for the balance; accord
was reached in settlement of a dispute, and the courts encourage parties to settle their dif-
ferences by agreement. It is crucial to decide whether there is a genuine dispute or whether
onepartysimplydoesnotwanttopay.Inthesesituations,legaladviceisalwaysnecessary.
