Payment In Full Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Payment In Full, written in plain English, along with examples of how it is used.
What is Payment In Full?
remitting all funds due to the other. Payment in full is mentioned at the back of the cheque endorsing either the settlement of full payment after discount or indicated by the payee on receipt of full payment that was due.
History and Meaning of Payment In Full
Payment in full is a term used in the world of finance and commerce, which means the payment of the entire amount owed for goods or services rendered. The payment can be in the form of cash, check or any other legal tender. The term should not be confused with partial payment or payment for only a part of the amount due.
Examples of Payment In Full
- John owed Mike $500 for some repair work. John sent Mike a check for $500 with "payment in full" written on it. This means that John has now legally satisfied his debt to Mike.
- A credit card company made a settlement offer to a customer to pay 50% of the $10,000 owed to them. The customer sent a check with "payment in full" written on it for $5,000. If the credit card company accepts this payment, it means they have accepted the settlement offer as full payment for the entire amount.
- In a lawsuit, if a payment in full is offered to the plaintiff and accepted, it means that the defendant is no longer liable for the damages and the case is closed.
Legal Terms Similar to Payment In Full
- Satisfaction: This term is used when a debtor discharges the obligation to the creditor either through payment in full or performance of an obligation.
- Discharge: Discharge means the release of a debtor from all their debts and obligations owed to the creditor.
- Accord and Satisfaction: Accord and satisfaction is a legal contract between the debtor and the creditor where the creditor agrees to discharge the outstanding debt for a certain agreed amount.