What can a business do to protect itself from a debtor's attempt to create an accord and satisfaction by sending the creditor a check with "paid in full" written on it?
A) Nothing. Businesses must carefully review every check to avoid inadvertently creating an accord and satisfaction.
B) Issue only liquidated debts to debtors and include provisions in credit card statements prohibiting the issuance of unliquidated debt.
C) Rely on the doctrine of promissory estoppel to ensure such checks are not valid.
D) Notify debtors that any attempt to settle a claim for less than the amount owed must be sent to a particular address and/or a particular person.
E) Sue the debtor for the remaining balance and argue there was insufficient consideration because there was no bargained-for exchange when the check was sent "Paid in Full."

Question

Quizplus · Accepted Answer

To protect itself from a debtor's attempt to create an accord and satisfaction by sending a check marked "paid in full," a business can specify that any attempts to settle for less than the full amount owed must be directed to a specific address and/or person. This approach allows the business to control and manage such offers, preventing accidental acceptance of reduced payments as full settlement.

What Can a Business Do to Protect Itself from a Debtor's