Legal Question in Business Law in Illinois

What do I do with an uncashed business check that our vendor has not cashed and is out of business?

"What are you concerned about? Stopping payment without further inquiry could result in a problem. Is there no person to contact? Just because a business is "out of business" doesn't mean the business owner isn't able to deposit checks in order to wind up the economic affairs of the business that was closed. So before just stopping payment on what was a legitimate obligation, see if you can reach the closed business's owner and if you can't, then it would be helpful to have some written confirmation of that before stopping payment. You might wind up having to pay it all over again."

Stephen Messutta

I have tried to contact them and there is no response. I found a post that they closed their business almost a year before we refunded their money. The check is almost a year old now.


Asked on 6/17/11, 4:47 am

1 Answer from Attorneys

You do not have to do anything. The check is stale by now as a result of their inaction and probably wont be honored by your bank. If they contact you, then issue a new check.

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Answered on 6/17/11, 10:27 am


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