Legal Question in Credit and Debt Law in New Jersey

Hello,

I am a building contractor in NJ. A client owes me $30,000 for a completed home improvement project. He sent me a check for half w. "Payment in Full" written on it. He has informed me he will not be paying the other $15,000. He is not dissatisfied w. the work and has plenty of money to pay the total contracted cost. I have a very tightly written contract signed by him and his wife. Should I cash this check? Will that constitute payment in full?


Asked on 11/16/11, 12:05 pm

1 Answer from Attorneys
Daniel B. Kelley Kelley Law Offices, L.L.C.

No, you should not cash the check. Per the following UCC provision: http://www.law.cornell.edu/ucc/3/3-311.html it appears you would be a great risk of considering it accepted as full payment. You should try to negotiate with him, yourself or through a lawyer, and see if you can get it settled.

Alternatively, you can not cash the check and sue him for the full amount; you also want to explore whether or not there is any way to use a contractor's lien to your advantadge. If you are in an extreme time pinch, it would cost more in legal fees, but you may be able to seek an Order to Show allowing you to cash the $15,000.00 in partial payment. There may also be other options that come to mind if you are exploring this matter further with an attorney.

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Answered on 11/22/11, 7:59 pm


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