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Question is if a contract says to "pay someone monthly"
And you pay them...person cashes in the check ...that constitutes payment
Person was "paid"
Then after that if the check doesn't clear because the payer's account overdrafts, then that doesn't change the fact the payer still paid the payee, correct?
After that contractually the payee has no right to file claims that the amount owed wasn't paid, right? The payee can decide not to do further business with the other party, but amount owed was paid even if not actually received, correct me if I'm wrong
A check is just a piece of paper telling the bank it is ok to pay someone. If you don't have the money to back that up, the check is nothing more than a piece of paper. You have not paid until and unless the check clears.
For example, in rental management, if rent is due on the 1st, with a 5 day grace period, and a tenant's check is received and deposited on the 5th, and LL finds out it bounced on the 10th (it often takes several days before the LL is informed the check bounced), the tenant owes both the bounced check fee AND late fees until payment is actually made.
If the check bounces, you definitely HAVE NOT paid.
Giving a creditor a check drawn on a bank is not payment of a debt. A check is a negotiable instrument; and until the check is negotiated (viz. cleared through banking channels), it does not constitute payment. Likewise, a dishonored or worthless check cannot be payment of an obligation.
Eric,
Who has the money?
That answers your question.
If I owed you 100.00 because you lent me cash, and I give
you a check for 100.00 a couple of days later, and you deposited
it, and it bounced, do you have 100.00 in your account? If there
isn't money in my account, there is nothing to put into yours.
Do I still owe you money?
Eric,
Who has the money?
That answers your question.
If I owed you 100.00 because you lent me cash, and I give
you a check for 100.00 a couple of days later, and you deposited
it, and it bounced, do you have 100.00 in your account? If there
isn't money in my account, there is nothing to put into yours.
Do I still owe you money?
Rule could be interpreted as no you wouldn't owe me $100 but I have the right not to do any more business with you in the future
It's like the guillotine rule where if the blade doesn't come down, you get to live and walk on out
Absolutely not. In Alabama there are regular roundups of people who try to pull this. They get taken to court and get a lovely criminal record in addition to having to pay the people that were defrauded. My business accounts have periodically had services that were even better. The bank teamed with a collection agency and the check was made good by the agency which then whomped the bad check writer with a ton of fees in addition to the original amount. I had one customer who used to play hinky games who stopped immediately after experiencing them. Made me smile.
Question is if a contract says to "pay someone monthly"
And you pay them...person cashes in the check ...that constitutes payment
Person was "paid"
Then after that if the check doesn't clear because the payer's account overdrafts, then that doesn't change the fact the payer still paid the payee, correct?
After that contractually the payee has no right to file claims that the amount owed wasn't paid, right? The payee can decide not to do further business with the other party, but amount owed was paid even if not actually received, correct me if I'm wrong
What world are you even from ?
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