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LC entered into a contract with MKL for distribution of MKLs printing systems. Distribution of the systems failed on three occasions and MKL notified LC

LC entered into a contract with MKL for distribution of MKLs printing systems. Distribution of the systems failed on three occasions and MKL notified LC of the system failures and costs to MKL. MKL demanded $26,000. The parties failed to resolve the amount owed. LC issued a check to MKL for $1,700, which noted FINAL PAYMENT. MKL cashed the check, and then sued LC for the balance it claims is owed. Who wins and why?

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