Is a notation on a check binding if the check is cashed?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Is a notation on a check binding if the check is cashed?

A credit card company said verbally my account of $6,000 was written off. I sent a check to the company for $100. I wrote a statement on the front and back. The statement was “by cashing this check you accept this money as payment in full”. I believe the statement on the check established a contract between the 2 of us. I believe that by cashing the check the contract was accepted. The credit card company now is taking me to court.

Asked on August 24, 2010 under Business Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Unfortunately, you are not correct. Annotations or comments on a check, whether on the back, the front, the memo field, etc. have no legally binding effect as a general matter--and in particular, they do not form an agreement when the the person righting the check owes money to the other  party. To form a contract or agreement, there must be consideration--or something given in exchange for the other party's promise, performance, services, etc. However, if you already owe someone money, you cannot use that money as consideration, since it is money you are already obligated to provide. (Consideration must be something you do NOT already owe to the other party.) Since you owed the credit card company $6,000, when you sent them a check for $100, they could apply that check vs. your outstanding balance owed. The $100 was not consideration for a new agreement.


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 lock Secured with SHA-256 Encryption