Composition Law and Legal Definition
Composition refers to an agreement between a debtor and two or more creditors for the adjustment or discharge of an obligation for some lesser amount. The payment made which is less than the full claims will be in full satisfaction of the claims. This is also termed as composition with creditors; creditors' composition; attermoiement. It also refers to the compensation paid as part of such an agreement.
In Anglo-Saxon and other early societies, composition refers to payment of money or chattels as satisfaction for an injury. It was recognized as a way to deter acts of revenge by the injured party.
Composition also means the combining of distinct parts or elements to form a whole. A matter formed by the intermixture of two or more ingredients.
