Did you know your checkbook contains a stack of tiny little blank contracts?
That’s right, a fully completed and cashed bank check meets all the legal requirements of a contract: offer, acceptance, consideration, meeting of the minds, legality and capacity. And as a contract, a check creates a legally binding agreement. A check can even void or amend your original contract. If you disagree with any terms on the check, don’t cash it! The most common place of contention on the check is in the notation section. For example, if you receive a check that says “full and final payment” remember this is a term of your contract and cashing it is your acceptance of that term. Just like it is illegal to change the check recipient, amount, or date, it is also not legal for the payee (receiver) of a check to alter the notation term of a check. So, it’s important to make sure every person in your operation who handles checks understands these rules because cashing a check accidentally does not excuse you from the contract.
If you have questions about a check you received, contact Amy @ Frisella Law Firm today.