composition

@ composition deed

An agreement embodying the terms of a composition between a debtor and his creditors

@ composition of matter

In patent law, a substance composed of two or more different substances, without regard to form. A mixture or chemical combination of materials

@ composition of tithes

@ real composition

@ composition of tithes, or real composition

composition of tithes, or real composition

This arises in English ecclesiastical law, when an agreement is made between the owner of lands and the incumbent of a benefice, with the consent of the ordinary and the patron, that the lands shall, for the future, be discharged from payment of tithes, by reason of some land or other real recompense given in lieu and satisfaction thereof. 2 Bl.Comm. 28

@ composition with creditors

An agreement, made upon a sufficient consideration, between an insolvent or embarrassed debtor and his creditors, whereby the latter, for the sake of immediate or sooner payment, agree to accept a payment less than the whole amount of their claims, to be distributed pro rata, in discharge and satisfaction of the whole. It constitutes an agreement not only between the debtor and his creditors but also one between the creditors themselves that each shall accept the lesser sums from the assets of the embarrassed debtor. Under the former Bankruptcy Act, if such a composition agreement expressly or secretly favored certain creditors, it was considered a preferential transfer and, as such, treated as an "act of bankruptcy."

See act of bankruptcy.

Such arrangements are generally provided for under the federal Bankruptcy Code.

See bankruptcy proceedings (business reorganizations

- wage earner's plan).

"Composition" should be distinguished from "accord." The latter properly denotes an arrangement between a debtor and a single creditor for a discharge of the obligation by a part payment or on different terms. The former designates an arrangement between a debtor and the whole body of his creditors (or at least a considerable proportion of them) for the liquidation of their claims by the dividend offered.

See also arrangement with creditors

- assignment (assignment for benefit of creditors)

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