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Change of Place of Payment

The payment of a smaller sum in satisfaction of a larger amount is not a good discharge of a debt.  However the debt is discharged if part payment is made;

  • before the debt is due, or
  • at another place, or
  • in a different medium than that required by the contract. [i]

In Thielen v. Thielen,[ii] defendant husband did not pay spousal support to plaintiff wife after their divorce.  He entered into an agreement where he paid the arrearage plus sums that were not due and owing in exchange for a discharge from the remainder of his obligation.  The court held that, the debt is discharged when part payment is made at another place than that required by the contract.

[i] Thielen v. Thielen, 88 Haw. 191 (Haw. Ct. App. 1998)

[ii] 88 Haw. 191 (Haw. Ct. App. 1998)


Inside Change of Place of Payment