“Don’t Cash that Check! –
The Pitfalls of ‘Accord and
Satisfaction’”
By: Justin O. Sorrell, RBE Attorney
I
magine this scenario: you sell your goods or services to
a customer and send an invoice, and the customer gives
you a check covering only part of your invoice. If this
happens, examine the check very carefully. If the check
says “Full and Final Payment” or “In Full Satisfaction”
anywhere, do not cash it (unless you are willing to accept
the reduced amount as full payment for your invoice). If
you do cash the check, you may be stuck with the reduced
payment under the doctrine of “accord and satisfaction.”
Accord and satisfaction occurs when a business tries
to get its full asking price for goods or services sold to a
consumer, who in turn asserts he or she is not obligated to
pay the full price billed because of a defect or breach of
warranty relating to the g