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P. Simmons
P. Simmons, Attorney
Category: Business Law
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Experience:  12+ yrs. of legal experience.
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I owe a debt of $1,000.00, if I write a check for $10.00 and

Resolved Question:

I owe a debt of $1,000.00, if I write a check for $10.00 and write on the check, "payment in full for services and property rendered" and they cash the check, does that release me from that $1,000.00 debt?
Submitted: 5 years ago.
Category: Business Law
Expert:  P. Simmons replied 5 years ago.
Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.

What you describe is known in the legal community as "accord and satisfaction"

Under Masachusetts General Laws Chapter 106, Section 3-311. You, the “debtor" may discharge your debt in the manner you describe if you can prove: (1) there was a bona fide or genuine dispute regarding the amount owed; (2) the person who is trying to collect the money (the “claimant”) received and accepted the check; and (3) the check, or an accompanying note, contained a conspicuous statement to the effect that the check was “tendered as full satisfaction of the claim.”

However, there is no accord and satisfaction in the following situations:

First, if the claimant is an organization and, prior to receiving your check, it sent you a statement informing you that communications concerning the disputed debt, including an instrument tendered as full satisfaction of a debt, must be sent to a designated person, office, or place, and you did not send the check to the designated person, office, or place.

Second, if within 90 days of the payment of the check, the claimant—whether an organization or not—returns the amount of the check to you. However, this exception does not apply if the claimant is an organization and you complied with their statement regarding the disputed debt and sent your check to the designated person. what you describe possible? Sure...but it will depend on if the creditor has given you notice on where to send such offers.

And they have 90 days to refund your money.

Let me know if you have more questions
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