ANSWERS: 3
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Yes, IF there was a genuine dispute about the amount owed. Otherwise no because there would be no consideration for the agreement to pay less than the full amount.
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According to snopes.com, the notion that one can settle a debt by writing 'paid in full' on the check is an urban legend. . http://www.snopes.com/business/bank/paidfull.asp
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According to the People's Court :) Paid in full is just that... but they can write cashed in protest above their endorsed signature on the back and sue you for the rest. I think it all depends on what state you're in.
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