Holman Manufacturing Co. v. Dapin

There is a familiar rule which has often been stated by this court that the payment of part of an undisputed liquidated debt does not discharge the debt altogether, even when it is expressly agreed that the payment is received in *100full satisfaction. This is based on the principle that such part payment furnishes no consideration for relinquishing the balance of the debt. The rule is of ancient origin. It ■may'be traced back at least as far as a decision of the court of common pleas thus reported by Sir Edward Coke:

“And it was resolved by the whole court, that payment of a lesser sum on the day…