The Rule in Pinnel's Case
In the case of an undisputed debt, at common law, an agreement between creditor and debtor that the creditor will simply accept part payment in full and final settlement of the full amount is not binding on the creditor.

Pinnel brought an action of debt on a bond against Cole, of 161. for payment of 81. 10s. the 11th day of Nov. 1600. The defendant pleaded, that he at the instance of the plaintiff, before the said day, scil . 1 October, the plaintiff accepted in full satisfaction of the 81. 10s. And it was resolved by the whole Court, that payment of a lesser sum on the day in satisfaction of a greater, cannot be any satisfaction for the whole, because it appears to the Judges that by no possibility, a lesser sum can be a satisfaction to the plaintiff for a greater sum: but the gift of a horse, hawk, or robe, &c. in satisfaction is good. For it shall be intended that


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