If I was inadvertently overpaid on an invoice by $1500, do I legally have to refund the money if 2 years have gone by?

Get Legal Help Today

 Secured with SHA-256 Encryption

If I was inadvertently overpaid on an invoice by $1500, do I legally have to refund the money if 2 years have gone by?

This was over 2 years ago. I never realized the overpayment was made and now the client, who is in another state, wants the money back. I do business s a corporation. I would pay it but I do not have the funds currently.

Asked on January 17, 2014 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

The passage of time does not allow you to keep the money, unless the statute of limitations, or time period to sue, has expired. Unfortunately, in most states, such as yours, the relevant statute of limitations, that for contracts. is typically 4 or more years. Therefore, the client could most likely bring a lawsuit against you to recover the money. They may not choose to, if they feel it's not worth the time and cost, but they appear to have the legal right to sue you.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption