Legal Question in Construction Law in California
final payment
if you cash a check that says ''final payment'' or something above the endorsement, are you legally agreening that this payment is the final one?
1 Answer from Attorneys
Re: final payment
Civil Code section 1526 says that where a claim is disputed or unliquidated and a check or draft is tendered by the debtor in settlement, and the words "payment in full" or the equivalent are notated thereon, the acceptance of the check or draft does NOT relinquish the claim IF the writing is crossed off or otherwise rejected......but the same law leads to the necessary conclusion that if the check is cashed without protest, i.e. the words are not stricken out, it IS indeed payment in full and thus the final payment. Note also that this applies only to bona-fide disputed or uncertain debts and claims. If there is no doubt, dispute or uncertainty as to the amount owed, the words "payment in full" or "final payment" would have no effect. However, such wording is usually indicative that the person making the payment does in fact dispute or question the amount he owes.
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