Legal Question in Credit and Debt Law in North Carolina

We are a small design firm in NC. We have all clients sign a contract, with cost of services spelled out for each project. We invoice the client monthly for partial payments until the project is complete and the construction documents are turned over. A client just issued us a check for their most recent invoice. There is still money due us, but they wrote "Final Draw on House Plans" on the memo line of the check. They claim they didn't know the plans were going to "cost this much" even though the cost is in the contract that they signed. At the first meeting, the contract was reviewed with them, paragraph by paragraph, and then left with them to review before they signed it. If this check is cashed, how does NC law interpret it? In my mind, the memo line is for a notation to the issuer of the check, not to the recipient. Thank you!


Asked on 1/25/11, 10:42 am

1 Answer from Attorneys
Jeff Rosner Rosner Law Firm P.A.

This is actually a complicated question and you may want to consult with an attorney in your area and bring copies of the contract, etc. A lot of different things can play into it.

For one article from a NC lawyer's perspective, see

http://www.vannattorneys.com/articles/cashing-a-customers-check/

Thanks,

Jeff

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Answered on 1/27/11, 2:13 pm


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