Composition. 1. An amicable arrangement of a law-suit. See COMPROMISE.
2. An agreement between a parson, patron, or ordinary, and the owner of lands, for commutation of tithes, e.g., that such lands shall for the future be discharged from payment of tithes, by reason of some land or other real recompense given to the parson in lieu and satisfaction thereof. Tithe Act, 1832, s. 2, and see TITHES.
3. Also an agreement made between an insolvent debtor and his creditors, by which the latter accept a part of their debts in satisfaction of the whole. See ARRANGEMENTS.
(According to Mr. Brandenstein) within the original meaning of that expression which -- at least in part -- were not consumed before the transfer to private use, or independently (or additionally) acquired goods, Fisher v. Finanzamt Burgdorf (ECJ), (2002) 2 WLR 1207.
Is an agreement between the compounding debtor an all or some of his creditor by which the compounding creditors agree with the debtor, and, expressly or impliedly, with each other, to accept from the debtor payment of less than the amounts due to them in full satisfaction of the whole of their claims, Hatton (in re:), (1872) 7 Ch App 723 (726) (UK) Halsbury's Laws of England, Vol. 3(2), para 75, p. 46.