Check as contract

If a check is issued with the words “payment in full” written on the check and the person who receives the check deposits the check, is that person legally agreein to the “payment in full.”

Howdy Legalquestioner:

It is usually written on the back of the check and more specific also. Insurance companies are great at doing this with settlements for instance and will put case numbers and accident dates etc on the back of the check and state that endorser hereby accepts payment in full from all claims arising from the accident.


I think you do not give enough detail on the situation.

If you owe me $1000 and send me a check for $500 with payment in full written on it, just becuase I cash the check does not release you for further obligation of the (unpaid) debt.

Howdy AAk554:

If you put it on the back as payment in full for the balance owed on the original $1000 debt it will hold up that you settled the debt for $500. I do not know a whole lot about it but endorsements like this are used often.