Virtually every business has been faced
with the dilemma of receiving a
customer's check for partial payment of a
debt, only to realize that the check includes
a notation stating that the amount
constitutes "full and final" payment.
The party receiving such a check
generally has two options: accepting and
cashing the check, or returning the check
to the debtor with a demand for full payment.
Obviously, the best alternative
would be to accept the check as partial
payment and pursue the balance.
Most jurisdictions construe cashing
such a check as a "full accord and
satisfaction," which precludes additional
claims or suits for the unpaid balance. In
essence, the partial payment becomes a
settlement offer, and, if it