Where the refusal is arbitrary and the debtor knows it has no basis, the payment of less than the full amount claimed does not operate as an accord and satisfaction even though it is tendered and received as such."
At that meeting, the debtor said that the account had been settled, Because the debtor took advantage of the vendor at the time of tendering payment, the debtor failed to meet the good faith requirement of the UCC and, thus, there was no accord and satisfaction.
Before a check can manifest an accord and satisfaction, the party who presents the check must make it clear that cashing the check is intended to settle all outstanding accounts between the parties.