Many jurisdictions have passed legislation providing that when a creditor has agreed to take less in full satisfaction of a debt, and has actually received the lesser sum, the creditor is not bound by the agreement and can sue for the difference.

Creditor

An individual, corporation, or other entity that is owed money by another entity, known as the debtor.

Legislation

Laws enacted by a government or legislative body to regulate, authorize, sanction, grant, declare or restrict.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.