Legal Question in Business Law in New York

Your question concerns the legal doctrine of accord and satisfaction. Generally, if there is an agreement concerning settlement of an amount of money less than what is due (the accord), and payment is made (the satisfaction), the creditor is no longer able to seek the remaining amount due.

If you wrote "paid in full" on the check without reaching an agreement with the company, there is no accord since the company did not cash the check with the understanding that payment would satisfy the debt. However, if you wrote "paid in full" after speaking with the company with the understanding that payment would fully satisfy the check, the company may no longer seek additional funds.

Mike.