Legal Question in Credit and Debt Law in New York
Is a cashed paid in full check binding?
I called for a pay out on a bill in Oct,2004 and the check written paid in full was cashed. I got a call a few days ago and they want additional money. Is my paid in full check binding?
1 Answer from Attorneys
Re: Is a cashed paid in full check binding?
If a check has a limited endorsement and is cashed with that endorsement on it, the endorsement creates a binding contract which may not subsequently be reversed. However, if you have a later agreement to pay more money or funds on a previous debt, this may create a new obligation and as a result continue the debt to atleast some degree.
The major question is whether your limited endorsement was proper, usually there is very specific language used to create a limited endorsement... it sounds like, however, you may have written a proper limited endorsement.
A further question would be what type of debt is this, some debts may not be gotten rid of so easily...
feel free to contact my office on this or any other matter #2127098303
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