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California Civil Code 1526a "Where a claim is disputed or unliquidated and a check or draft is tendered by the debtor in settlement thereof in full discharge of the claim, and the words "payment in full" or other words of similar meaning are noted on the check or draft, the acceptance When a drawee acknowledges in writing on the face of the draft that the buyer will pay the draft at maturity. of the check or draft does not constitute an accord and satisfaction if the creditor protests against accepting the tender in full payment by striking out or otherwise deleting that notation or if the acceptance of the check or draft was inadvertent or without knowledge of the notation." In layman's terms, if you debtor sends you a check marked "payment in full", you have the right to black out those words and cash the check under your terms. The debtor can not view this as acceptance of the full payment, even if you did not notice the "payment in full" markings and cashed the check as is. Some debtors will use a check to stop a personal guarantee. They will write something on the check like "cancel personal guarantee". This you can not block out. The personal guarantee will be canceled from the date you received the check. It is now your choice whether you will continue to sell this customer on open account. |
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