Quittance (Québec)

A Quebec quittance (release or discharge) is a formal legal document under the Civil Code of Quebec by which a creditor formally acknowledges having received payment of a debt and releases the debtor from the corresponding obligation. Governed by articles 1687 to 1692 C.c.Q. on the remise de dette (release of debt) and article 1553 C.c.Q. on payment, this document serves as definitive proof that a debtor has satisfied their financial obligation. The quittance is a fundamental instrument in Quebec civil law practice, used to formally close out a debt relationship between parties. When a creditor signs a quittance, they are making a legally binding declaration that payment has been received and that the debtor is released from the specified obligation. This release can be full (quittance totale), covering the entirety of the debt including principal, interest, and all accessory amounts, or partial (quittance partielle), covering only a portion of the obligation. The document is particularly important in Quebec because of the civil law tradition of requiring formal documentation for significant legal acts. Unlike a simple receipt for payment, a quittance carries specific legal consequences under the C.c.Q. It constitutes a definitive release that is generally irrevocable once signed, meaning the creditor cannot later claim additional amounts for the same obligation within the scope of the quittance. The quittance also serves a practical function in relation to registered securities and hypothecs, as it provides the basis for the creditor to consent to the cancellation of any registered encumbrances on the debtor's property.

A Quebec quittance is needed whenever a debtor has fully or partially paid a debt and requires formal written confirmation from the creditor that the obligation has been satisfied. The most common scenario is the final payment of a mortgage or hypothec loan, where the debtor needs the creditor (typically a financial institution) to provide a quittance and consent to the cancellation of the hypothec registered against their property at the Land Registry. Without this document, the hypothec remains on the register even after the loan has been repaid. Personal loans between individuals also frequently require a quittance upon final payment, particularly when the loan was documented with a formal reconnaissance de dette or contrat de prêt. The quittance provides the debtor with protection against any future claim by the creditor for the same debt. In commercial transactions, businesses regularly issue and receive quittances when settling accounts, paying suppliers, or concluding service agreements. The document is also essential in settlement agreements where parties resolve disputes by payment, as the quittance formalizes the release and prevents the matter from being reopened. Additionally, a quittance may be needed in estate matters when an heir or executor settles debts of the deceased and requires proof of payment for the liquidation of the succession.

The key elements of a Quebec quittance include several essential components for legal validity under the Civil Code of Quebec. First, complete identification of the creditor (partie quittançante) who is granting the release, including full legal name, address, and contact information. Second, complete identification of the debtor (partie quittancée) who is receiving the release. Third, a precise description of the original obligation from which the debtor is being released, including its date, nature, and original amount. Fourth, confirmation of the payment received, including the exact amount paid, the date of payment, and the method of payment used. Fifth, the scope of the quittance must be clearly specified as either full (totale) or partial (partielle), with any remaining balance and conditions stated if partial. Sixth, the waiver of future claims must be addressed, indicating whether the creditor renounces all future claims or reserves certain rights. Seventh, if there were registered securities or hypothecs, the document must address their discharge and the creditor's consent to cancellation at the RDPRM or Land Registry. Eighth, a good faith clause pursuant to article 1375 C.c.Q. must be included. Ninth, the governing law clause must reference articles 1687-1692 and 1553 C.c.Q. and confirm Quebec jurisdiction. Finally, the document must be signed and dated by both parties at a specified location.