Legal Question in Credit and Debt Law in Texas
If I cash this check, is this agreeing to final payment
I have a small business as a General Contractor, only working for this one property management company here in TX. I provided services for them for an emergency project-an apt. bldg of theirs had a raw sewage back up throughout 1 of the units for over 1 week etc. With this co. I have never had to use written contracts, especially since this was something that required immediate attn. The owner asked if I could take on this project and money was never discussed, this is not unusual. The project took over 3 months to complete due the severity of the unit. I billed the company as I normally do & after several weeks of no repsonse I recvd an email stating ''insurance was not covering'. I then spoke w/owner & several times he asked for 2 weeks, for 2 more weeks etc. Then he stated he was turning over my bill to the Contractors of the bldg. After 2 months I started assessing late fees which is stated on my invoice- anothr month went by & after being ignored I received a payment for $1500 - the original invoice was for $5200+$600 late fees. The hand written letter stated this is Final apprvd. contractor payment based on competitve bid from outside contractors for similar work. If I cash $1500 am I accepting this as being pd in full?
1 Answer from Attorneys
Re: If I cash this check, is this agreeing to final payment
Probably not. Is there any notation on the check itself? A "payment in full" is binding if there's a legitimate dispute over a bill. But from what you've indicated, that's not your situation. If you cash the check and give him credit for the payment, you can then go after him in Small Claims.