I am selling a saddle to a friend. She currently has and is using the saddle. So far she has only given me one check in the amount of $600 and still owes me about $500. We agreed she would make payments to me when she has the money. Can I cash this check now? My husband thinks if I do it negates our agreement and she doesn't have to pay me anything else for the saddle.
2 Answers from Attorneys
You should avoid cashing the check only if the check says "full payment" or "payment in full" or the equivalent. You should still have your agreement written somewhere, however, to prove it should there be a dispute.
Play it safe. Put the agreement in writing with the $600 as a down payment.