Kent Corp.(KC),a general contractor building a new dorm at a university,contracted with Fine Rugs Inc.(FRI)to have a certain grade of industrial rugs installed in the dorm.The contract price was $180,000.After the rugs were installed,KC was dissatisfied with the rug quality.FRI insisted that the rugs installed were appropriate to the contract specifications and demanded full payment.KC sends FRI a check for $120,000,which KC believes is the proper value for the rugs installed,and marks the check "Paid in Full." FRI writes "Under Protest" on the check and deposits it.FRI may now,in most states,successfully sue KC for the balance of $60,000.

Question

Quizplus · Accepted Answer

If FRI accepted the check marked "Paid in Full" and deposited it, they have effectively agreed to settle the debt for the amount stated in the check. By adding the notation "Under Protest," FRI has not refused the check, but they also cannot sue for the remaining balance. However, laws may vary by state, and it is always best to consult with a legal professional in such matters.

Kent Corp(KC),a General Contractor Building a New Dorm at a University,contracted