Legal Question in Credit and Debt Law in Iowa
Cashing checks that say paid in full
I need to know where I can find the collection law that
states that if you cash a check that says, ''paid in full''
on it then you are consitering the account paid in full.
I would like to print it out on paper so I can keep it for
my files for furture reference.
2 Answers from Attorneys
Re: Cashing checks that say paid in full
If you find this, it will probably be a judicial
ruling in a case, and from what I have seen, the case law is on both sides of this issue, consider the burden on the book of the month club to have to process all those checks, and have to watch out for someone trying to cancel their account by marking it "paid in Full"
Re: Cashing checks that say paid in full
The legal doctrine that you are looking for is called "accord and satisfaction". Check lawguru under your state using these terms. My experience under New York law is that an accord and satisfaction will usualy act as an acceptance by the recepient of the payment as payment in full. It does depend on the circumstances and is subject to different interpretations in each state, so you do need to do the research.
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