A student asked me about the following situation after we discussed
accord and satisfaction:
 
Her company has received a check for a disputed debt which says
"Payment in full" ON THE MEMO LINE!   She wants to know whether
cashing this check would be the same as if the "Payment in full" was
written on the back of the check.
 
I told her that generally what is written on the memo line is
considered an internal communication - a message to the drawer's
bookkeeper how to account for the check - rather than a communication
to the Payee, but that I would want to check with colleagues before
telling her it would be OK to  (that is that the company would not be
bound if they) cashed the check.
 
Has anyone read a case on point?  Any suggestions??
 
Thanks!
Ellen Rubert - [log in to unmask]