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Commercial Law Keyed to Lopucki
McMahon Food Corp. v. Burger Dairy Co
Facts
Appellee regularly sold milk products to Appellant. Appellant sold used plastic milk cases to Appellee. A dispute arose as to the total debt Appellant owed to Appellee. Appellee’s representative, Byslma and Appellant’s representative, McMahon met to discuss the debt. Both parties agreed that they altered the terms of their future business relationship but disagree as to whether a resolution was reached regarding the past owed debt. Later, McMahon met with Larry Carter, (Carter), who replaced Byslma. At that meeting, McMahon claimed to have settled the debt with Byslma. Both parties agreed that Appellant still owed $51,812.98. McMahon promptly made out a check in that amount writing “payment in full” on the voucher, which Carter also signed. After the meeting, Carter contacted Byslma who denied settling the debt with McMahon. Appellee held the check for several months and eventually negotiated the check, crossing out “payment in full” and adding the notation, “without prejudice .” Appellant contends that the negotiation of the check constitutes an accord and satisfaction.
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