Does cashing a check marked “paid in full” mean I can’t collect the balance still owed?

It is a common myth that if someone writes “paid in full” on the memo line of a check, and the check is cashed, then the person cashing it has actually agreed to accept that amount as payment in full and is barred from attempting to collect any further balance due. The person writing the check may attempt to argue that by writing “paid in full,” he offered to settle the debt for that amount, and that by cashing the check the other party accepted the offer, forming a new agreement to accept that amount as full payment.

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