Legal Question in Banking Law in California

paid in full

I wrote a check to another party. In the memo I wrote paid in full. He scratched it out and cashed it. I think he is legally paid in full. Do you. The check was a large amount--$40,000. It was the remainder of a divorse settlement. The ex husband is mentally ill.

Thanks,

Sharon


Asked on 3/26/05, 12:03 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: paid in full

No, he has not been legally paid in full. Unless the debt is disputed, you cannot simply right "paid in full" on a check and expect to be free of the debt. See California Civil Code Section 1526 and Commercial Code Section 3311. You described the debt as the remainder of a divorce settlment, so the debt is not a disputed and your "paid in full" notation means nothing.

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Answered on 7/09/05, 5:05 pm
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: paid in full

The underlying contract/settlement will likely control over your notation. However, it is technically incorrect and if your underlying contract/settlement supports your position, you should be succesful -- if so you may contact me.

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Answered on 3/26/05, 12:16 pm


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