Answer:
A composition agreement.
Explanation:
A composition agreement is an agreement between insolvent debitor and two or more creditor, that each of the creditor will get some specified amount, which will be less than their actual claim. Creditors agree and accept the agreement in full satisfaction. According to the agreement, the lump sum amount is proportionately divided among creditors, who accept the offer in the agreement. Creditor who decline the offer are not bound by the agreement.
