All courts hold that cashing a "payment in full" check discharges the obligation of debt under the Uniform Commercial Code.

Question

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Under the Uniform Commercial Code (UCC), specifically UCC Section 1-207 (now renumbered as 1-308), the acceptance of a "payment in full" check can discharge a debt, but this outcome can vary. Courts may consider whether the creditor expressly reserved their rights before cashing the check, and state laws and interpretations of the UCC can differ, leading to varying outcomes in different jurisdictions.

All Courts Hold That Cashing a "Payment in Full" Check