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Handling Less Than “Full Payment” Checks in New York

posted Jan 5, 2014, 9:20 PM by Bryan Berson   [ updated Sep 13, 2014, 5:05 PM ]

Suppose a customer owes a vendor $75,000, but he gives a check for $50,000 and the memorandum says “full payment.” The “full payment” notation is a “restrictive endorsement.” Perhaps the customer is playing a stealthy trick. Perhaps he genuinely believes he owes $50,000. Regardless, the check is $25,000 short, and the vendor earned the money.

Now what? Should the vendor deposit it? Give it back? Demand full payment? Sue?

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