Today's brief decision in Middleton v. Aboutown Enterprises Inc., 2009 ONCA 466 deals with what amounts to an acknowledgement of debt.
While the standard is not one of perfection it is significant:
[1] We do not accept the motion judge's statement that to stand as an acknowledgment, the letter and Release would, "at a minimum, have to demonstrate and confirm the amount of the debt that remained owing". That said, we agree with his conclusion that the letter and unsigned Release, even when read in light of the share purchase agreement, did not constitute a clear and unequivocal acknowledgement of the debt claimed, with a proposal to satisfy it, as opposed to a mere offer to settle a claim, without acknowledging that $412,500 or indeed any amount remained owing in respect of the promissory note.
James Morton
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