Download PDF version (202k) Log In or Register to view the full article as a PDF document.
Let's assume your company has just completed a remodeling project and is owed final payment of $18,500. The owner intends, however, to withhold $8,500, claiming that some of the work does not conform to spec and that certain change order work was too expensive. After arguing unsuccessfully, you finally threaten to lien the property if payment of the full amount of $18,500 is not forthcoming. The owner subsequently sends you a check for $10,000 with the following language typed on the back of the check above the endorsement line: This check constitutes payment in full and endorsement hereof releases payer from all other claims by the payee. If you cash the check, do you forfeit your right to collect the