RoaldDahl
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LSDefine
Simple English definitions for legal terms
payment in full
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A quick definition of payment in full:
Payment in full: When you owe someone money, paying them everything you owe is called payment in full. Sometimes, the person you owe money to might agree to accept less than what you owe them, but if they agree to accept the amount you owe them, that's also payment in full. If you write "payment in full" on a check, it might not always mean that the person you owe money to agrees that you've paid everything you owe. A court might need to decide if you really paid everything you owed.
A more thorough explanation:
Definition: Payment in full means paying all the money that is owed to someone else. It can also refer to an agreement between a person who owes money (debtor) and the person they owe money to (creditor) to settle the debt for an amount less than what is owed.
For example, if someone owes $10,000 to a credit card company but can only pay $8,000, they may negotiate with the company to accept the $8,000 as payment in full. This means that the credit card company cannot come back later and demand the remaining $2,000.
Another example is when someone writes a check to pay a debt and writes "payment in full" on the back of the check. This is an attempt to show that the person accepting the check agrees to accept the payment as complete. However, courts may require that the person who wrote the check had a good faith belief that they owed less than the full amount due.
Overall, payment in full means paying all the money that is owed and settling the debt completely.