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If I cash check with smaller payment do i accept this amount for whole judgment?

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kaban18

Member
What is the name of your state? SD

Won small claim against ex Renters.
They did not pay withing 30 days of the judgment so i send them a threatning letter saying that if they don;t pay full amount in 5 days I will pursue wage garnishment or Sheriffs judgment execution. Within 5 days i received a check for 1/5th of the full amount.
My question is when I cash this check do I automaticly accept this amount as full payment or not?

Thanks in advance for your help people!!
 
Last edited:


JETX

Senior Member
My question is when I cash this check do I automaticly accept this amount as full payment or not?
What you are concerned of is called 'accord and satisfaction' where the debtor tries to claim that by accepting and tendering their check with a 'paid in full' statement on it (called a 'restrictive indorsement'), they are claiming that a NEW contractual obligation is created where payment is in full.

Some states allow that, most do not. Your state (South Dakota) is one that does NOT.

The following is from the SD Codified Laws:
57A-3-206. Restrictive indorsement.
(a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument.
(b) An indorsement stating a condition to the right of the indorsee to receive payment does not affect the right of the indorsee to enforce the instrument. A person paying the instrument or taking it for value or collection may disregard the condition, and the rights and liabilities of that person are not affected by whether the condition has been fulfilled.
 

kaban18

Member
Thanks soo much for your time and effort!!
Knowledge is power.:)
I guess I will cash their check and just apply interest for the remainder balance until they pay up.
 

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