Acquittance

Definition

The term acquittance refers to a document that provides evidence the debt of a borrower has been extinguished.  The most common example of an acquittance is a receipt stating a debt obligation has been paid in full.

Explanation

An acquittance is a written document that states a debtor has been released from any obligation to a creditor.  An acquittance may be issued after the debt has been repaid in-full, or as part of a transaction that releases the borrower from the obligation to repay a debt.  For example, a lender may issue an acquittance when a borrower pays off their mortgage.

While the most common example of an acquittance is a receipt, a borrower may receive a receipt after making partial payment on a loan.  A receipt of this type is known as an acquittance pro tanto.

Related Terms

accounts receivable, cash, assignment, factoring, allowance for doubtful accounts, special allowance accounts