Cashing a check that alters conditions of a contract

[anikolop]

What is the name of your state (only U.S. law)? TX

I would appreciate any advice on the following scenario: A contractor quotes a price over the phone to a customer. The customer then mails a check for FAR LESS than the amount discussed on the phone along with a self-serving letter indicating "his understanding of the terms discussed on the phone." Unfortunately, the check was cashed through an oversight on the part of the contractor. The customer is now demanding the reduced price due to "acceptance of his counteroffer."

I did some research and it seems that under the UCC the money can be sent back within 90 days in cases of disputed debt amounts where a debtor writes "paid in full" on the check. Since that doesn't seem to apply here, is there any remedy for the contractor, or does he have to provide the greatly reduced price? Thank you.

 

[HomeGuru]

What is the name of your state (only U.S. law)? TX

I would appreciate any advice on the following scenario: A contractor quotes a price over the phone to a customer. The customer then mails a check for FAR LESS than the amount discussed on the phone along with a self-serving letter indicating "his understanding of the terms discussed on the phone." Unfortunately, the check was cashed through an oversight on the part of the contractor. The customer is now demanding the reduced price due to "acceptance of his counteroffer."

I did some research and it seems that under the UCC the money can be sent back within 90 days in cases of disputed debt amounts where a debtor writes "paid in full" on the check. Since that doesn't seem to apply here, is there any remedy for the contractor, or does he have to provide the greatly reduced price? Thank you.

**A: what class is this homework for? Why do you think the UCC applies in this case?

 

[anikolop]

Where do I state that the ucc applies?

 

[Zigner]

Where do I state that the ucc applies?

I dunno...perhaps where you said you did some research and it seems that under the UCC...

 

[anikolop]

I guess the UCC doesn't apply. What kind of law governs these situations?

 

[Zigner]

I guess the UCC doesn't apply. What kind of law governs these situations?

That clears up one question - now what about the other one?

 

[Antigone*]

What is the name of your state (only U.S. law)? TX

I would appreciate any advice on the following scenario: A contractor quotes a price over the phone to a customer. The customer then mails a check for FAR LESS than the amount discussed on the phone along with a self-serving letter indicating "his understanding of the terms discussed on the phone." Unfortunately, the check was cashed through an oversight on the part of the contractor. The customer is now demanding the reduced price due to "acceptance of his counteroffer."

I did some research and it seems that under the UCC the money can be sent back within 90 days in cases of disputed debt amounts where a debtor writes "paid in full" on the check. Since that doesn't seem to apply here, is there any remedy for the contractor, or does he have to provide the greatly reduced price? Thank you.

Section 4-208 of the UCC code has bubkis to do with your scenario. In your scenario the contact is altered not the check. A late return cannot be done in this case because the check itself was not altered.

Back to your research buddy.

 

[anikolop]

Oh, and this is a real life situation, not a homework assignment.

 

[nickjames]

What you need to do is write a check back to the contractor for the same amount (assuming you cashed it) and tell him all bets are off. If he threatens you with a breach of contract suit tell him good luck on proving his damages.