Legal Question in Business Law in New York

Accounts receivibles

I have invoiced a customer for materials and labor. The customer has made partial payments and sent a check marked in the memo area of the check '' Final Payment-Paid in full. If I cash this check does that mean that I am accepting this payment as paid in full even though there is a balance due? Or should I write in the same area ''In Dispute''


Asked on 12/16/08, 11:42 am

3 Answers from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Accounts receivibles

I would cross out the language stating final payment - paid in full, if there remains a balance due and owing after depositing the check.

Mike.

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Answered on 12/16/08, 11:48 am
Carlos Gonzalez Gonzalez Legal Associates PLLC

Re: Accounts receivibles

In NY if you accept a check marked in such a way it creates a contract, thereby dropping any claim to further money.

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Answered on 12/16/08, 11:53 am
Antoinette Wooten The Wooten Legal Consulting, PC

Re: Accounts receivibles

I would return the check with a demand for full payment within ten days.

Before returning the check make a copy of the check.

If you do not receive full payment then file a claim with smalls claims court for the balance of the payment if the balance is $500 or less.

Some banks may not honour checks that have been altered.

In fact it is their right not to honor altered checks.

Sincerely,

Patricia Martin-Gibbons

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Answered on 12/16/08, 11:54 am


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