Legal Question in Business Law in California

Payment in Full

I run a personal services business. One of my clients owes me $6300+ and has not paid me for over 1 year.

After several months of not being paid, I began to add a 2% monthly late charge. The last bill I sent the client was for $7,800. This week, the client sent me a check for $5,000 and wrote ''PAYMENT IN FULL''. I do not want to accept that this amount is payment in full, and want to try to collect the full amount I billed for. If I cash the check, how can I preserve my rights to collect the remaining $2,800 - for example by submitting the demand for payment to a collection agency.


Asked on 5/27/07, 9:05 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Payment in Full

Take a look at Civil Code section 1526; as I read it, you can strike out the words "PAYMENT IN FULL" and deposit it without prejudicing your rights. I believe the legal theory is that tendering the check is an offer of an accord and satisfaction, and striking out the words is your rejection of the offer.

Read more
Answered on 5/28/07, 12:45 am


Related Questions & Answers

More Business Law questions and answers in California