What is the term for a situation where one party accepts part payment of a debt as full satisfaction?

The term that accurately describes a situation where one party accepts part payment of a debt as full satisfaction is rooted in the legal concept established in the case of "Foakes v Beer." This principle indicates that a debtor may not be released from the entire obligation by merely offering a lesser amount unless there is some additional consideration provided. In that case, the court held that a promise to accept a lesser amount in satisfaction of a larger debt is not enforceable unless the creditor receives some sort of benefit or consideration beyond just the promise of the lesser payment.

In the context of part payment, it's important to consider that simply accepting a smaller payment does not extinguish the whole debt unless further conditions are met. Therefore, the principle from "Foakes v Beer" serves to illustrate that while part payment can be accepted, it does not automatically equate to the full cancellation of the debt unless legally stipulated or agreed upon.

This term reflects the fundamental tenets of contract law regarding obligations and satisfactions, making it crucial for understanding creditor-debtor relationships in business law. Other options may involve concepts related to settlements or waivers, but they do not specifically encapsulate the legal implications established by the cited case, which focuses on the enforceability of such agreements concerning debts.