Legal Question in Banking Law in California
A client wrote on the back of a check to us: endorser acknowledges payment in full of invoice.
But it was only 2/3 of invoices. If we do cash the check, can we still ask for the rest of the payment?
Asked on 3/02/11, 3:02 pm
2 Answers from Attorneys
No. Do not cash the check. Otherwise, you are agreeing to the statement. It is a quirky thing in California. Send the check back and ask for a new one for either the full amount or the partial amount without any writing. If they do not pay and they owe you the money, you have a potential breach of contract claim.
Answered on 3/03/11, 1:27 pm
You can strike out the restrictive endorsement and then cash the check. Civil Code section 1526(a). If you want to play it safe, however, follow Ms. Mains advice.
Answered on 3/03/11, 2:09 pm
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