Legal Question in Consumer Law in New Jersey

Binding Contract

Hello,

I am wondering if there is a way to make a personal or bank check a legal contract. I have to pay a sum of money to a person for a term of education, but I want the payment to be contingent upon the completion of a program that the money is applied to. If this person should fail or terminate barring any sickness or unforeseen disaster.

Then said received payment shall be forfeited.

I doubt I can get this person to sign a written contract, so is there any way to make the check, once signed by the receipient, a binding contract. I thought of submitting an affidavit along with payment stating the terms, and then once the check is signed, it becomes a legal binding contract. Possible? I thank you in advance for any help you may provide.

Regards,

G Gervasi


Asked on 9/06/05, 9:13 pm

1 Answer from Attorneys

John Corbett Corbett Law Firm LLC

Re: Binding Contract

There is no good way of doing what you suggest except for a written contract separate from the check.

A check is a contract, but not one between the payor (you) and payee (educator). It is between the payor's bank and the payor. A check can recite its consideration (e.g., " In full payment of ....") without destroying its negotiability. This can act as proof of payment, but it does not form a contract in itself. Attempting to make a check read like a contract will destroy its negotiablity and no bank will accept it except, perhaps, the payor bank.

The statute of frauds also requires that any contract of the type you propose over the value of $500 must be evidenced by some writing signed by the person to be charged. If you have no such writing, a court will not treat any dispute as a contract issue. The dispute would be treated as matter of equity (fairness)and the educator would probably recover any special costs plus a proportionate share for the services rendered.

You state, "I doubt I can get this person to sign a written contract ...." That makes me more inclined to see that you have one. It doesn't have to be complex, but it should recite the essentials.

So, a written contract is best. Lacking that, pay-as-you-go according to whatever plan you both agree is reasonable.

If you have further questions, feel free to call.

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Answered on 9/12/05, 8:12 pm


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