If A borrows from B, A now owes B
Then C shows up and pays B with the agreement that it settled A’s debt to B.
A does not know any agreement was made but the original A owes B
A goes to pay B.
B says A doesnt owe B.
C says A owes C
But A did not make an agreement that he owed C.
How does A owe C now?
It seems to me that: C gave A the gift of settling A’s debt to B.
In: Economics
The reason it works is usually there is verbal in the contract A signs with B that B can transfer the remaing debt to a third party (C). Without needing consent of A. And that A will now owe C the remaining debt.
So if C want B to transfer the debt then they need to offer something in return. IE buying the debt.
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