"Paid in full" legally binding?

[ursapooh]

I submitted a check to a creditor with the words "Payoff for Account" then my account number in the memo field. The creditor and I disagreed over the amount owed. The creditor cashed the check. Is this debt now settled? I live in GA.

 

[Michael Wechsler]

Good question. Frequently the answer is "no" although it depends upon the state and the general facts in issue. Usually it will involve both sides being aware of the offer, made in good faith. It has reached urban legend status that you can simply write "paid in full" on your checks as an "offer" to partially pay a bill and get off the hook... not so.