Legal Question in Credit and Debt Law in California
Memo line on Check
If you receive a check with a memo line that says ''paid in full if cashed'' and the person actually owes more, can you cash it then send them a letter saying that they still have a past due balance?
1 Answer from Attorneys
Re: Memo line on Check
Not unless both sides agree to the payment as satifying the debt.
Section 3-311 of the UCC does state that a debt can be discharged with a check designated as payment in full "if the person against whom the claim is asserted proves that the instrument or an accompaying wirtten communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim."
Don't cross anything out on the check or make any other changes to it; notify the person that they still owe you the debt minus whatever they paid you.
Disclaimer: The information provided here is not legal advice, but general information on legal issues commonly encountered. This advice is not a substitute for consulting an attorney or law firm. Nothing here should be construed as creating an attorney-client relationship.
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