What is the effect of a partial payment?

A partial payment is when a person makes a payment on an obligation or debt, but does not pay the entire amount owed. In Washington, the effect of a partial payment on a contract is mixed. It will depend on the language used in the agreement. Generally, a partial payment on an agreement will be treated as a payment on account. The person who made the payment is only responsible for the partial amount, not the full amount. This means that if the person does not pay the remainder of the debt, the creditor can only recover the amount that was paid in partial payment. However, partial payments may also be treated differently depending on the contract. Some contracts may require the full payment of the debt and the partial payment is considered a breach of the contract. If a partial payment is made and the creditor specifically agreed to accept the partial payment, the contract will not be breached. The effect of a partial payment may also be affected by the type of debt or obligation. In some cases, partial payment of an obligation may be treated as an acknowledgment of the debt. Depending on the type of debt, this may mean that the person still owes the full debt amount, but it will be subject to the laws of restitution. Regardless of the situation, it is important for both parties in a contract to understand the effect of a partial payment prior to it being made. This will ensure that the contract is not breached or that the debt or obligation is not left open-ended.

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What is the effect of a partial payment?

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