Legal Question in Business Law in New York

Write a check paid in full

Hello, If you write a check to a company that you owe a debt and write paid in full on the check and the company honor the check by cashing and posting the amount to your account do you have to pay the rest of the account. For instant, I had a friend tell me taht she wrote checks to pay her debts. She wrote a check for 15 dollars and wrote paid in full in the memo section of the check. She owed 450.00 dollars on the account but the company accepted her 15.00 dollar paymet as paid in full. She told me that it was completly legal to do this and she did not pay the company any more money.

Can you tell me if this can be done?


Asked on 9/20/04, 1:43 pm

3 Answers from Attorneys
John Friedman Law Office of John K. Friedman

Re: Write a check paid in full

She's confusing the concept of "accord and satisfaction" with "paid in full." Suffice it to say that merely writing "paid in full" on the memo section of a check will only legally wipe-out your debts when pigs fly.

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Answered on 9/20/04, 2:29 pm
Stephen Loeb Law Office of Stephen R. Loeb

Re: Write a check paid in full

In order for there to be an accord and satisfaction there needs to be the settlement of a bonafide legal claim. The settlement must be made in good faith. You can't just write a check for $2.50 on a $1500 debt just because you feel like it. It won't work and could lead to a theft of services criminal charge.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 9/20/04, 2:59 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Write a check paid in full

I agree with John and Stephen. This is another urban legend, that just isn't so. If it was, everyone would do it. Without verification that the total debt has been paid, a notation on your check carries no weight if you were sued for the difference.

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Answered on 9/20/04, 5:05 pm


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