Does U.C.C. Section 1-207 Apply to the Doctrine of Accord and Satisfaction by Conditional Check
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FIRST PARAGRAPH(S)|Section 1-207 of the Uniform Commercial Code provides: "A party who with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as 'without prejudice', 'under protest', or the like are sufficient."|In Scholl v. Tallman South Dakota became the first jurisdiction in which its highest court ruled on the applicability of this section to the common commercial transaction known as "accord and satisfaction by conditional check." The South Dakota Supreme Court held that U.C.C. § 1-207 does apply to such a transaction. This interpretation alters the common law view that acceptance of a conditional check for payment of a disputed claim bars an action for recovery of the balance due. Whether other jurisdictions should adopt the Scholl position and apply U.C.C. § 1-207 to the doctrine of accord and satisfaction by conditional check is the subject of this article...
11 Creighton L. Rev. 515 (1977-1978)
Creighton University School of Law