Practice Quiz

Paralegal Exam Prep

Category - Contracts

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Pamela owes Patricia $1200 for a motorcycle she purchased from Patricia. Pamela gave Patricia $200 checks for each of first 5 monthly payments. She then gave Patricia a check for $100 for the last payment. On the back of the check she wrote, " full satisfaction." Patricia wants the full final payment of $200. What is the best way for Pamela to ensure that Patricia fulfills her part of the contract by paying the balance of $200?
  1. Return the check to Pamela and request payment of $200.
  2. Cross out the "full satisfaction" notation, cash the check, and request payment of $100 from Pamela.
  3. Cash the check and request payment of $100 from Pamela.
  4. A or B.
  5. A, B, or C.
Explanation
Answer: A. The best way for Pamela to ensure that Patricia fulfills her part of the contract by paying the balance of $200 is to return the check to Patricia and request payment of $200. While some courts will interpret crossing out the "full satisfaction" notation as a rejection of the accord, courts are not in agreement on the issue. Therefore, the best course of action is to not cash the check.
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