“Section 1478 of the Civil Code provides: “Performance of an obligation for the delivery of money only, is called payment.” Section 1478 is not exclusive and does not preclude the use of the term ‘payment’ to express delivery of things of value other than money. The Commercial Code provides that an item is paid when it is paid in cash or when it is settled pursuant to law. ‘Payment is that which the parties to the contract agree shall be accepted as such.’ Payment of the obligation underlying the plaintiff’s complaint is an affirmative defense.”
[California Affirmative Defenses [certain citations omitted]]
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