Question

Sheila was in a dispute with Bob regarding the adequacy of goods supplied under a contract. In an effort to settle the matter, Sheila sends Bob a check marked "payment in full." If Bob cashes the check, which would be the result in a majority of states?

• The court would determine that consideration is absent and that Bob can sue for any additional amounts owed.

• The court would determine that there was only partial consideration and that Bob can sue for any additional amounts owed.

• The court would rule that cashing the check discharged any obligation of Sheila and that Bob would not be able to recover further amounts.

• The court would rule that while cashing the check worked as an admission on the part of Bob, he was not estopped from pursuing further action against Sheila on the debt.

Answer 1

The court would rule that cashing the check discharged any obligation of Sheila and that Bob would not be able to recover further amounts.

As Sheila made the final offer & encashing the cheque would be implied acceptance of that offer unless there is some fraud done by Sheila.

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