While you may be tempted to cash any check received these days, with a memo noted “paid in full”, the cashing of that check may modify your earlier agreement and extinguish your contract.
For example, say you had an agreement to provide goods or services for $5,000. You invoice the client. The client sends you a check for $3,500 with a note marked “paid in full”. If you cash the check, you may be held to effectively amend the agreement to accept the contract price of $3,500.
So, you ask, what are you to do when you get a check for less than the full amount? Under the Uniform Commercial Code (UCC), you are not required to return the check; therefore, you could simply destroy the check. As a business point, and this is not in the UCC, you can negotiate a payment plan or other settlement.
Read More “Considering Cashing a Customer’s Check Marked “Paid In Full”? Think Again!” »
Hon. Jay Young (Ret.) is a retired judicial officer with decades of experience presiding over complex civil litigation matters. Following a distinguished career on the bench, Judge Young now serves as a mediator, arbitrator, and court‑appointed special master, and discovery referee. Judge Young brings a disciplined, impartial, and results‑oriented approach to dispute resolution. Judge Young is based in Nevada and accepts appointments statewide and nationally, subject to agreement or court order. He can be reached at 855.777.4557 or info@armadr.com
Known for judicial temperament, analytical rigor, and practical problem‑solving, Judge Young assists litigants and counsel in resolving high‑stakes disputes efficiently and with integrity and employing best practices. He is recognized by U.S. News and World Report’s publication Best Lawyers as Arbitration Lawyer of the Year.
