Should You Cash a Check Marked 'Payment in Full'?

Cashing a client's partial payment that bears "full payment" in the memo field may nullify your claim to the unpaid balance

April 22, 2016
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It is not uncommon for a homeowner who has a dispute with a remodeler over some aspect of a project to write a check for less than the final balance due, and write "paid in full" or something similar in the memo field. In many jurisdictions, cashing that check could forfeit the ability to claim the balance of payment due. While a homeowner can't arbitrarily use such a ploy in the middle of a job, many courts have ruled in favor of a homeowner who makes such a claim on a check at project completion.

Read more at The Lien Zone

 

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