Prior to becoming an attorney, I was told the story that when you signed checks with”PAID IN FULL, “PAID IN FULL” written on the check, you were recognizing the check as a full payment of any debt due. However, I’ve never considered the legal principle due to the fact that “People don’t really do that, do they?”
In Triangle Construction Co. v. Fouches and Assoc., the Court of Appeals of Mississippi decided that the PAY IN FULL principle, also known by lawyers referred to as agreement and satisfaction–barred any claim by a contractor for an additional payment.
The Facts. The contractor was awarded a contract to build a water system in two counties. After the project was completed, the contractor commenced claims against the engineer and engineer to recover damages caused by their negligence. Engineer and owner.
After the project was completed after the project was completed, the owner issued the contractor a check titled “Final Payment.” Still, the review was not able to pay the contractor for the cost of construction that had increased due to the delays or the expansion of the project beyond what was contracted for. The contractor acknowledged that it had redeemed the check. However, it argued that it had repeatedly stated to the owner, including in a letter addressed to the engineer at the time–that it didn’t consider”the “final payment” to be final and was determined to pursue the remaining portion of the money it due.
The Court’s Ruling. The court did not agree. Under Mississippi law, despite what the parties may argue was their intent, cashing a check marked “final payment” constitutes an accord-and-satisfaction agreement, which precludes that party from bringing future claims for additional payment. In the case of Triangle Construction, the court decided that the claims of the contractor against an engineer’s claim were preempted under the doctrine of agreement and satisfaction.
Then What? The “paid in full” principle isn’t just a common story. According to the law of your state when you sign an item that has the words “paid in full” or even “final payment” then you could be putting yourself at risk that you could be paying any claims that you have. If you’re an individual who wants to keep those claims on hold and you are a contractor, don’t pay the check if it has a special message on it.
- Do you have any notice conditions?
Yes, federal contractors who are covered are required to post signs at the entry points to protected workplaces that provide Information about safety procedures. The protocols must specify the requirements for those who have been vaccinated as well as not fully vaccinated employees and include any social distancing or masking conditions.
The individual who has been designated is responsible for sharing the Information required. Apart from advertisements at entryways, Information can also be distributed via emails, websites, memoranda or flyers, announcements on job websites, and other ways.