| Accord and Satisfaction A well-drafted publishing contract will set out the nuts and bolts of the deal, including how much the author will be paid. But what if the publisher’s check, when it finally arrives, is written for less than the agreed-upon amount? It might be a simple bookkeeping mistake, or it might be an attempt to shortchange the author. Should the author cash the check and try to recover the difference later, return the check, or hang onto it and hope for the best in negotiations with the publisher? A general legal principle called “accord and satisfaction” states that there are circumstances in which cashing a check written for an amount less than the sum actually owed will be considered an acceptance of the partial payment as payment in full. If this happens, there is a waiver of the author’s right to try and collect the difference from the publisher. Factors include the existence of a good faith dispute between the parties about the amount owed and whether the partial payment is actually intended by the debtor to be a settlement for the entire debt. The intent to offer a settlement rather than an offer of a partial payment with more money to come may be indicated by language on the check, such as “Payment In Full” on the memo line, or by a similar notation on accompanying paperwork. Adding “Under Dispute” or similar language to a check by a creditor in an attempt to avoid agreeing to a full settlement probably will not help, depending on other facts and circumstances.
Cashing the partial payment check might sound like a good idea, but it could create problems. Authors, or any creditors, who find themselves in this situation should consult an attorney for situation-specific advice.
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