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Simple English definitions for legal terms
satisfaction of debt
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A quick definition of satisfaction of debt:
Term: Satisfaction of Debt
Definition: Satisfaction of debt means giving something to fulfill an existing legal or moral obligation. It is different from performance because it is always something given as a substitute or equivalent of something else. For example, paying off a debt is a satisfaction of debt. It can also refer to the payment of a legacy provided for in a will during the testator's lifetime.
A more thorough explanation:
Definition: Satisfaction of debt refers to the act of fulfilling an obligation, usually by paying off a debt in full. It can also refer to the giving of something with the intention of extinguishing an existing legal or moral obligation.
For example, if someone borrows money from a friend and then pays back the full amount, that would be considered satisfaction of debt. Similarly, if a company owes money to a supplier and then pays off the debt, that would also be satisfaction of debt.
Another example of satisfaction of debt is when a testator pays a legacy provided for in a will during their lifetime. This is known as a satisfaction piece and is intended to fulfill the testator's obligation to the beneficiary.
Overall, satisfaction of debt is about fulfilling obligations and settling debts, whether through payment or other means.