Correct option is A
When 'B' accepts Rs. 2,000 from 'A' in
full satisfaction of the entire debt, the
whole debt is discharged. This is an example of
accord and satisfaction, where the creditor agrees to accept a lesser amount in the discharge of the full debt. This is binding, and the remaining Rs. 3,000 cannot be claimed.
Information Booster:
Accord and satisfaction are a recognized method for discharging a debt. In such cases, even though the full amount owed is not paid, if the creditor accepts a lesser sum as a full settlement, the debtor is released from the entire obligation. It reflects the mutual agreement to resolve the debt with a reduced amount.
Additional Knowledge:
·
No debt is discharged (b): Incorrect, as the acceptance of Rs. 2,000 in full satisfaction discharges the entire debt.
·
A part of the debt is discharged (c): Incorrect, as the entire debt is discharged through the accord.
·
None of the above (d): Not applicable since the whole debt is discharged.
