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§6.03 Paid-in-Full Checks

Lesson 6:
Checks & EFTs

If “paid-in-full” or other similar words are conspicuously noted on a check or in an accompanying writing that is tendered in good faith as full satisfaction of an unliquidated claim or bona fide dispute, the claim is discharged when the creditor obtains payment of the check. [Com C §3311(a)–(b).] Section 3311 supersedes the earlier enacted CC §1526(a) that allows a creditor to opt out of an accord and satisfaction of an unliquidated or disputed claim, while still accepting the check as partial payment, by striking out or otherwise deleting the notation. [Woolridge v J.F.L. Elect., Inc. (2002) 96 CA4th Supp 52, 57–60.]


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