Legal Question in Credit and Debt Law in Pennsylvania

Charge account versus cash sales

I have a customer who has a charge account with our company.

He has not paid us for material since December 2001. I put him on COD. I called his office 4 times for payment but he was never available, I left messages on his phone and he never once returned my call. Last week he went to one of our plants for material for which he offered cash. I refused his cash. Is this legal for me to do?


Asked on 7/22/02, 9:37 am

1 Answer from Attorneys
Gerald Hershenson Law Office of Gerald M. Hershenson

Re: Charge account versus cash sales

As a practical matter, in my opinion you should have accepted cash. Payment not accepted does not affect the obligation to receive payment in the future and is not illegal. However, whenever a debtor defaults, it is my policy to accept payment by whatever mean is tendered. I understand you did not want cash, but I believe you should accept it. If it is an unreasonable large sum of money meet the debtor at the closest bank and get a cashier's check. If a bank is not available take the payment or risk that the debtor will default. If I can be of any assistence, please let me know. Gerald Hershenson 215-579-9390.

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Answered on 7/22/02, 10:31 am


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