COMPOSITION DEED Meaning and
Definition
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A composition deed refers to a legal document created to establish an agreement between a debtor and their creditors in order to settle outstanding debts. It is a voluntary agreement devised to avoid bankruptcy and potential legal complications that may arise from an inability to repay debts. A composition deed typically outlines the terms and conditions agreed upon by both parties, aiming to strike a compromise that is acceptable to both the debtor and the creditors involved.
Within a composition deed, the debtor proposes a payment plan or an alternative arrangement to satisfy their financial obligations. The document may include provisions such as reduced debt amounts, extended repayment durations, or modifications to interest rates and fees. These terms are usually tailored to the specific financial circumstances of the debtor and the preferences of the creditors.
Upon mutual agreement, the composition deed becomes legally binding, requiring adherence from all parties involved. It provides a structured framework for debt resolution, enabling the debtor to manage their outstanding debts more effectively and the creditors to recover a portion of the owed amount. Notably, once the terms of the composition deed are fulfilled, both parties are released from further obligations stipulated in the original debts, solidifying the settlement agreement.
Overall, a composition deed serves as a formal agreement between a debtor and creditors, offering a viable alternative to bankruptcy while ensuring a fair and satisfactory resolution for all parties involved.
Common Misspellings for COMPOSITION DEED
- xomposition deed
- vomposition deed
- fomposition deed
- domposition deed
- cimposition deed
- ckmposition deed
- clmposition deed
- cpmposition deed
- c0mposition deed
- c9mposition deed
- conposition deed
- cokposition deed
- cojposition deed
- comoosition deed
- comlosition deed
- com-osition deed
- com0osition deed
- compisition deed
- compksition deed
- complsition deed
Etymology of COMPOSITION DEED
The term "composition deed" is derived from the combination of two words with distinct origins.
1. Composition: The word "composition" comes from the Latin word "compositio", which means "arrangement" or "putting together". In medieval times, it was used in legal contexts to refer to an agreement or settlement made between a debtor and their creditors to resolve outstanding debts.
2. Deed: The term "deed" comes from the Old English word "dēd", which means "a legal contract or document". It is derived from the Latin word "datus", which means "given" or "granted". In legal terminology, a deed refers to a written document that conveys or transfers ownership or interest in a property or legal rights.
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