Accepting a Wyoming check which indicates ‘payment in full’

Asking for the owner of a small business in Wyoming An invoice for over 2000
has been sent to a customer. The customer sent a check for a lesser amount
indicating ‘payment in full’ on the memo line. Does this mean he cannot seek the
additional amount owed to the business?

Asked on March 16, 2016 under Business Law, Wyoming

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Making such a notation on the the memo line of a check is not legally binding. By cashing it, you will not give up your legal rights to collect the full sum owed. The fact is that if someone owes money, they cannot unilaterally change the amount owed or even the terms of payment. There is a common misconception that such a notation as you have described has legal force; it does not. The memo line line is strictly for informational purposes; it simply helps to identify the reason that the check was written. Think about it, if it were that easy to alter the terms of a payment, everyone would do it. 


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