Legal Question in Business Law in Colorado

accord and satisfaction

client owes $10,000. Sends check for $5,000 with letter and wording on check both stating ''for payment in full''. In colorado can I sign the check ''without prejudice'' or ''under protest'' cash it and take the client to small claims court for the rest?


Asked on 9/30/08, 3:54 pm

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: accord and satisfaction

Your attempts to reserve your rights are generally not effective. On the assumption that the debt at issue is "unliquidated" or in dispute, your deposit works an accord and satisfaction and the debt is discharged.

Merely crossing out the "payment in full" or having your reservations will not reserve your rights to sue for the $5,000 balance. Contact an attorney to determine if such debt may be considered liquidated or not in dispute.

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Answered on 10/01/08, 1:29 am


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