According to UCC Section 3-311,if a business inadvertently cashes a paid-in-full check,the business has six months from the date it cashed the check to offer repayment in the same amount to the debtor and thereby avoid an enforceable accord and satisfaction.

Accord and Satisfaction

Accord and satisfaction is a legal contract where a dispute is settled by the parties involved agreeing to give and accept something of value in different terms than the original agreement.

UCC Section 3-311

A provision in the Uniform Commercial Code that addresses the accord and satisfaction by use of a negotiable instrument.

Paid-in-Full Check

A paid-in-full check is a check by which the issuer intends to settle a debt completely, often accompanied by a statement indicating that the payment is meant to resolve the obligation in full.