154 Ga. App. 450 | Ga. Ct. App. | 1980
Appellant sued under his contract of insurance to recover damages which represented the claimed costs of repairs to his forklift which was insured by appellee. After an initial payment for repairs of $1,004.12, and after at least one phone conversation between appellant and appellee’s claims manager, a second draft in the amount of $1,265 was sent to appellant. This draft bore on its face the words "full and final settlement for all claims of every nature,” and "not valid after 90 days from issue.” Plaintiff testified
"It is now the law of this State that if a debtor remits to the creditor a sum of money, less than the amount actually due, upon the condition, either express or implied, that it is in satisfaction of the creditor’s claim, and the latter accepts and retains the money, an accord and satisfaction results, and this is true whether the demand be liquidated or unliquidated, disputed or undisputed.” Dixie Belle Mills, Inc. v. Specialty Machine Co., 217 Ga. 104, 107 (120 SE2d 771) (1961). "Where a debtor concedes his liability for part of an account which is in dispute, and tenders the sum ... in full settlement of the account, the creditor, by accepting and using the amount so tendered, extinguishes the whole account, notwithstanding the fact that he protests at the time that the remainder of the account is still due and owing. [Cits.] The reason [for] this rule is that payment being made upon condition, the acceptance of the payment carries with it the acceptance of the condition.” C. & S. Bank v. Union Warehouse &c. Co., 157 Ga. 434, 453 (122 SE 327) (1923). Accord, White Repair &c. Co. v. Georgia Roofing & Metal Co., 152 Ga. App. 92 (262 SE2d 164) (1979).
Judgment affirmed.