"Writing off" accounts payable without the debt holders consent?

 I am the treasurer of a mid-sized not-for-profit that is involved in business incubation.

Our executive director struck a deal with a couple of outside consultants 3 years ago whereby they would provide a service to our clients, and they would be paid once we collected from our clients, and not before that.

It has been determined that we will not be collecting from our clients, however, the deal struck was never documented, and when the issue came up a year ago, one of those outside consultants advised at that time that he still considered the money due. That outside consultant has not pursued any collection activity that I am aware of.

Our executive director is pressuring me to allow a reversal of that accounts payable, and does not want me to contact the outside contractor to confirm the arrangement. I am resisting this, as I do not believe that GAAP would allow it, nor do I believe that (I am in Canada) the CICA handbook would either. I do not have a professional designation, but am very aware of accounting issues.

Any comments on this? Can an accounts payable ever be "written off"? I am OK setting it up as a contingent liability, but am NOT OK with reversing the expense.