The claimants claimed the sum due under an adjudication award of andpound;43,984.66. The claimants had originallyy told the defendant they would take andpound;6,000 in settlement of the award. They were sent a cheque for andpound;5,000 expressed to be ‘in full and final settlement’ of the debt. The defendant now said that the letter sent by their solicitors clearly stipulated that ‘The payment is tended as an offer of settlement which will deemed to have accepted by you and therefore be contractually binding if it is presented to your bank and cleared for payment. If you are not willing to accept the payment on these terms, would you please return the payment and we will assume therefore that the dispute will have to continue’. The claimants waited two weeks before presenting it. Then two days after clearance they wrote to inform the defendant that they would not accept the lesser sum in satisfaction of the debt. The claimant sought summary judgment.
Held: The request was refused. This was too long a period of time for the claimant to have held the cheque without informing the defendant of their intentions. Also, since the offer and payment were made by a third party, the presentation of the cheque was taken to be a clear acceptance of the offer of compromise.
Judges:
Wilcox J
Citations:
[2003] EWHC 1333 (TCC), [2003] CILL 2039, [2004] TCLR 4
Links:
Citing:
Cited – Day v McLea CA 1889
The fact alone that a person receives and accepts a cheque offered in full and final settlement of the person’s claim for a higher sum does not create an accord and satisfaction. There is only an accord if there is an agreement whereby the person . .
Lists of cited by and citing cases may be incomplete.
Construction, Arbitration
Updated: 28 June 2022; Ref: scu.220590