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TeachMeFinance.com - explain Composition historic definition... Composition -- An agreement between a debtor and his creditors by whicB the latter accept in full payment of their claims a portion of the amounts due. The sum or rate paid or agreed to be paid in compounding with creditors also is called composition. A composition agreement is strictly interpreted by the courts. For instance, A owes B $100 and says to him, "If you will release that debt I will pay you $10 a week for the next five weeks." B agrees. If A fails to make the payment in any one of the five weeks B is no longer bound by his agreement. He may rescind the agreement immediately and sue for so much of the $100 as he has not received in the weekly instalments, which if kept up would have discharged the debt for $50. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.