Legal Definitions - satisfaction of debt

Definition:Satisfaction of debt refers to the act of fulfilling an obligation, usually by paying off a debt in full. It can also refer to the giving of something with the intention of extinguishing an existing legal or moral obligation.

For example, if someone borrows money from a friend and then pays back the full amount, that would be considered satisfaction of debt. Similarly, if a company owes money to a supplier and then pays off the debt, that would also be satisfaction of debt.

Another example of satisfaction of debt is when a testator pays a legacy provided for in a will during their lifetime. This is known as a satisfaction piece and is intended to fulfill the testator's obligation to the beneficiary.

Overall, satisfaction of debt is about fulfilling obligations and settling debts, whether through payment or other means.