Legal Question in Business Law in New York
Cashing a check received for disupted compensation
I am in dispute with a company that signed a contract with me to do a project. They terminated the project with me and have sent me a check which represents only the amount of the project they wish to compensate me for and not the entire amount. They said they were not satisfied with what I turned in to them and will not pay a penny more than an arbitrary amount they've decided on.
If I cash the check, on which they have noted in the memo area ''payment in full,'' would this consitute my agreement to settle for the amount they have sent? Once I cash the amount do I have any recourse against them? Also,
would it be lawful for me to cross out their memo ''payment in full'' and insert the words ''partial payment'' or to endorse the check on the back and note ''partial payment'' only?
4 Answers from Attorneys
Re: Cashing a check received for disupted compensation
As the difference of opinions indicate, there could be a problem if you cash or deposit that check. It is legally much safer to institute action against them for breach of contract and claim that they never paid the agreed contract price. We have substantial experience handling these types of cases, however, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.
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Re: Cashing a check received for disupted compensation
If you endorse the check it will be construed as acceptance of their condition of payment, that is, that you are accepting it as full payment.
Re: Cashing a check received for disupted compensation
I would cross out that part of the check which says "payment in full" and write "partial payment".
After the check is cashed you would have a claim against the amount of the contract less payment received.
Mike.
Re: Cashing a check received for disupted compensation
The rider on the check saying paid in full constitutes an offer for a contract, if you cash it you are agreeing to the contract and are bound to the terms..
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