Legal Question in Business Law in Georgia
Accept as payment in full
I submitted a check in payment for a debt. The amount of the check was not what the company told me I owed, but was what I thought was reasonable. I noted on the back ''accept as payment in full.'' The check was processed by my bank and paid. Am I free of any further obligation in regard to this debt?
2 Answers from Attorneys
Re: Accept as payment in full
Generally, writing something like that on a check does not get you out of the debt. Otherwise, many people would try to slip that in on all of their bill pmts.
Re: Accept as payment in full
This is where reasonable minds can disagree. My opinion is that by depositing your check, you have reached and "Accord and Satisfaction". However, any judge may disagree.
See: 13-4-103. Acceptance of less than amount of debt.
(a) Except as otherwise provided in this Code section, an agreement by a
creditor to receive less than the amount of his debt cannot be pleaded as
an accord and satisfaction unless it is actually executed by the payment of
the money, the giving of additional security, the substitution of another
debtor, or some other new consideration.
(b) Acceptance by a creditor of a check, draft, or money order marked
"payment in full" or with language of equivalent condition, in an amount
less than the total indebtedness, shall not constitute an accord and
satisfaction unless:
(1) A bona fide dispute or controversy exists as to the amount due; or
(2) Such payment is made pursuant to an independent agreement between the
creditor and debtor that such payment shall satisfy the debt.
13-4-101. Elements and requirements of accord and satisfaction generally.
Accord and satisfaction occurs where the parties to an agreement, by a
subsequent agreement, have satisfied the former agreement, and the latter
agreement has been executed. The execution of a new agreement may itself
amount to a satisfaction of the former agreement, where it is so expressly
agreed by the parties; and, without such agreement, if the new promise is
founded on a new consideration, the taking of it is a satisfaction of the
former agreement.
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