Louisiana Civil Code 2657 – Giving in partial payment
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Terms Used In Louisiana Civil Code 2657
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
An obligor may give a thing to the obligee in partial payment of a debt.
A giving in partial payment extinguishes the debt in the amount intended by the parties. If the parties’ intent concerning the amount of the partial extinguishment cannot be ascertained, it is presumed that they intended to extinguish the debt in the amount of the fair market value of the thing given in partial payment.
Acts 1993, No. 841, §1, eff. Jan. 1, 1995.