Which was stated to be in full and final settlement of debt

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Problem

Raymond runs a small consultancy business, of which he is the soleproprietor, specialising in personal taxation advice. He entered into acontract with Samantha, a struggling artist, under which he agreed toprepare some draft business accounts for her, covering the last threeyears, for the sum of £800. Raymond completed the work but Samanthatold him she could only afford to pay £200 for the work. After a bitterargument Raymond reluctantly accepted a cheque for £200 from Samantha, which was stated to be in full and final settlement of the debt.

Shortly afterwards Samantha's paintings began to realise very highprices and Raymond has just read in a newspaper that her latest work hasbeen sold for £20,000. He now wishes to claim the balance of £600from Samantha and approaches you for advice.

 

Reference no: EM133771363

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