If I cash a check from a customer and it says "paid in full", even though it doesn't pay the total balance owing, am I obligated to take it as full payment (legally)?
2007-06-20 05:58:18 · 6 answers · asked by flynrench 1 in Business & Finance ➔ Other - Business & Finance
It really can become an issue especially if the person who wrote the check did it intentionally, They can argue that you accepted their check in good faith as payment in full and with you accepting this check it does make a good case for a judge to decide on, not that the judge would rule for that person due to you being able to present their unpaid balance.
I would not ever accept a check with any thing written on it that claims it has been paid in full because it does bring up a legal issue and one that may be ruled against you. So just refuse any payment by check that has written on it Paid in full
when in actuality they still have a balance on your books,Some people get by in life scamming businesses and they know the legal system you have to be so very careful, if this happens again just ask the customer to please write you another check because you will not be able to accept that one due to them writing payment in full on it and just explain the problem to them and remind the customers they still have a balance and by your accepting that check you could be obligated to honor the payment in full and you wouldn't be in business long if you did accept such checks.
Yes you could be obligated to honor this check legally.
2007-06-20 06:35:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on what state you live in and how the laws are written. In some states, it would mean that you are accepting the check as payment in full the moment you cash it. This is because the "payment in full" notation is viewed as a contract, and by you signing the contract (endorsing the check) you are agreeing that payment was made in full. Ask for a different check, or, if you want, cross out the "paid in full" notation and put your initials buy it. But that will only work if your state law allows it.
2007-06-20 06:17:24 · answer #2 · answered by Writer of Truth 4 · 0⤊ 0⤋
I have seen this work in the past. It really comes down to going to court and making your case before a judge. You could argue that the full amount owed was so much more than the amount it couldn't be taken seriously. But then the judge could say that you should have had them issue a new check.
I wouldn't cash it, unless I was willing to forgive the balance.
2007-06-20 06:02:10 · answer #3 · answered by Tim 7 · 1⤊ 0⤋
don't cash it until you get ahold of the customer, have them come in, cross that out and initial it, why don't you get invoices for them to sign? that would make things alot easier for you. any way don't cash it until they write on the check that the balance isn't paid in full.
2007-06-20 06:09:45 · answer #4 · answered by sweetheart88 3 · 0⤊ 0⤋
No, but have them send another check in case they decide to dispute their balance in court.
2007-06-20 06:06:38 · answer #5 · answered by lissie 4 · 0⤊ 0⤋
Not necessarily - that's a common way people try to scam sellers.
2007-06-20 06:01:05 · answer #6 · answered by Judy 7 · 0⤊ 0⤋