This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The principles which control the effect of a receipt in full are substantially those which control where checks are sent in full. If no dispute has arisen,1 as where the receipt in full is given for a share of profits, the amount of which is unknown to the party who gave such receipt so that the receipt is given in reliance upon the statement of the adversary party,2 no accord and satisfaction can exist. If the parties know that no settlement is intended, a receipt "on account" can not be treated as an accord and satisfaction.3 A receipt which purports merely to be "in full of all obligations to date," and which is for the amount actually due at such date, is not an accord and satisfaction as to claims which one party contends will become due at a subsequent time,4 such as a claim arising for an alleged breach of contract.5