Claims Waived by Depositing "Final Payment" Check
In the midst of a dispute over the proper sum to pay, one side tendered a check with "final payment" written in the notation line. The other side modified the notation to make the payment applicable only to one particular part of the dispute & then cashed the check.
The Court of Appeals held the act of cashing the check extinguished the party's claim for the remaining balance. Addressing the altered notation, the court said it had "no effect" because it was a "unilateral modification not communicated" to the other side.
Copy of decision also available here Download file
