Legal Question in Business Law in California

Payment receipt

We owe a medical bill. If we send payment with ''Payment in Full'' clearly written on check and person accepts check and cashes it. Is this action acceptance that the debt is cleared and no more monies owed?

What statute or code in California would that be? (Specific number, please).


Asked on 1/04/05, 1:36 pm

3 Answers from Attorneys

Daniel Harrison Berger Harrison, APC

Re: Payment receipt

Cal. Civil Code �1526 and Cal. Commerical Code �3311 are in conflict with one another on this issue. However, per case law, �3311 may prevail. (Just make sure your situation falls under �3311.)

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Answered on 1/07/05, 11:17 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Payment receipt

Writing "payment in full" on a check is an attempt to create an "accord and satisfaction," which amounts, legally, to replacing the old contract with a new one. Your specific situation is covered by Civil Code section 1526, but you should also look at sections 1521-1525 for definitions and other laws reflecting overall legislative policy on accord and satisfaction.

As you will see when you read 1526, the writing of "payment in full" or words to that effect on a check MAY result in an accord and satisfaction when the check is cashed, but not necessarily, since the payee can avoid that result by crossing off the words or by inadvertence, etc.

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Answered on 1/04/05, 3:10 pm
Michael Olden Law Offices of Michael A. Olden

Re: Payment receipt

If I am correct in my dealing with your question you were basically asking can you pay in full without paying in full. People deserve to be paid what they are owed. People have a right to getting a fair amount for the amount that they are paid. In your case, they won't win. What you think is fair, especially from a doctor, won't be enough. Why don't you just called a doctor and work out a payment schedule where you would pay everything, EVERYTHING, most people pay the bill in full and what they can do is put on their payment in full if it in actuality it is payment in full.. You see, if you pay everything you owe them that you can actually put payment in full the total amount of the bill. I think what you're telling me is if we pay less than full but put " payment in full" on the bill. I would not give you any legal advice applicable to that as it is obnoxious toward my moral compromises. In this case I am saying, but your own conscious be the guide.

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Answered on 1/04/05, 8:54 pm


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