Legal Question in Business Law in Wisconsin

signing a check someone wrote paid in full on

The phrase paid in full on a check does not carry any meaning if there is a debt still in dispute. What you should do is write the person that gave you the check and indicate that you are considering the check as partial payment for the debt. It would be wise to send this letter by certified mail. Indicate in that letter how much more is owing and that you expect payment of the remainder of the debt. Keep a copy of this letter and go to court probably small claims to recover the remainder of the amount owed. Once the letter is delivered you may cash the check. If you do not write this letter before you cash this check this may indicate that you accepted the check as full payment. It is your right to accept or reject a payment as constituting full payment. The mear fact that the debtor wrote "paid in full" does not bind you since you have not agreed that the payment pays the debt in full. I would check with a local attorney since laws may vary in different states.

Check that States Payment in full

Under the uniform commercial code where a debtis disputed and a party writes payment in fullon a check cashing the check could discharge thedebt obligation. If it written on the back ofthe check you may cross the words "paid in full"off. If it written on the front of the checkyou may not alter it. I would advise you toconsult an attorney in your jurisdiction forfurther advise. The facts you presented werenot detailed enough for an educated opinion.

Does "Paid in Full" mean "Paid in Full"?

In CA, there is a special statute that allowsthe creditor to cross out "paid in full", cashthe check and still sue for the full amount.

However, the legeslature later passed Commercial Code �3311 which appears to provide for the opposite result. There are no cases addressing this seeming contradiction.

I suggest looking at UCC �3311 if it was adoptedin your state as a starting point.