Legal Question in Banking Law in California

If our company cashes a check that is not payment in full, but the hospital/company writing the check is not willing to pay the invoice as it is billed. The bill was $13450.00. They said they negociated down to $6300.00 with the owner of the equipment that we contracted with. We also had a signed contract with the hospital/ company that owes us the balance. My question is that, if we cash this partial check, are we no longer legally allowed to persue the balance of the original invoice?

Should we write on the check partial payment, or not cash it?


Asked on 2/15/10, 5:20 pm

1 Answer from Attorneys

You are free to accept partial payment as long as you notify or have notified the customer that you are not waiving your right to collect the balance due.

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Answered on 2/20/10, 5:47 pm


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