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Code section 3311)(West 2002) provides in pertinent part:
Accord and satisfaction by use of instrument
(a) If a person against whom a claim is asserted
proves that (1) that person in good faith tendered an
instrument to the claimant as full satisfaction of the
claim, (2) the amount of the claim was unliquidated or
subject to a bona fide dispute, and (3) the claimant
obtained payment of the instrument, the following
subdivisions apply.
(b) Unless subdivision (c) applies, the claim is
discharged if the person against whom the claim is
asserted proves that the instrument or an accompanying
written communication contained a conspicuous statement
to the effect that the instrument was tendered as full
satisfaction of the claim.
Subdivision (c) of section 3311, referred to above, does not
apply here to prohibit discharge of the claim. According to the
Uniform Commercial Code Comments, California Commercial Code
section 3311 follows California’s common law rule that cashing a
check offered as full satisfaction of a disputed claim results in
an accord and satisfaction, thereby precluding the payee from
cashing the check and refusing to be bound by the condition.
Cal. Commercial Code sec. 3311, comments 2, 3. (West 2002).
Whether California Commercial Code sec. 3311 applies to this
case turns on whether the check or an accompanying written
communication contained a conspicuous statement to the effect
that the check was tendered as full satisfaction of the claim.
Pellegri Sr. personally delivered the check to petitioners at
their home. Although Pellegri Sr. informed petitioners that he
had negotiated a settlement with JTF, there were no restrictions
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Last modified: May 25, 2011