70A-3-311 - Accord and satisfaction by use of instrument. - Utah Statutes

70A-3-311. Accord and satisfaction by use of instrument.
(1) If a person against whom a claim is asserted proves that that person in good faithtendered an instrument to the claimant as full satisfaction of the claim, the amount of the claimwas unliquidated or subject to a bona fide dispute, and the claimant obtained payment of theinstrument, the following subsections apply.
(2) Unless Subsection (3) applies, the claim is discharged if the person against whom theclaim is asserted proves that the instrument or an accompanying written communicationcontained a conspicuous statement to the effect that the instrument was tendered as fullsatisfaction of the claim.
(3) Subject to Subsection (4), a claim is not discharged under Subsection (2) if either ofthe following applies:
(a) The claimant, if an organization, proves that:
(i) within a reasonable time before the tender, the claimant sent a conspicuous statementto the person against whom the claim is asserted, which states that communications concerningdisputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to adesignated person, office, or place; and
(ii) the instrument or accompanying communication was not received by that designatedperson, office, or place.
(b) The claimant, whether or not an organization, proves that within 90 days afterpayment of the instrument, the claimant tendered repayment of the amount of the instrument tothe person against whom the claim is asserted. This Subsection (3)(b) does not apply if theclaimant is an organization that sent a statement complying with Subsection (3)(a)(i).
(4) A claim is discharged if the person against whom the claim is asserted proves thatwithin a reasonable time before collection of the instrument was initiated, the claimant, or anagent of the claimant having direct responsibility with respect to the disputed obligation, knewthat the instrument was tendered in full satisfaction of the claim.
(5) Merely writing a statement on a check which declares that a child support obligationis paid in full is not sufficient to bind the recipient who endorses the check. Child supportobligations are considered owing unless paid in full or otherwise ordered by a tribunal.

Amended by Chapter 176, 2003 General Session