Legal Question in Business Law in Nevada

Final Settlement on Cashed Check

My family ownes a landscaping company in Washoe County. We entered into a contract with a customber for a total amount of $10k and require a 50% down to start. The customer and the company did not get along and in an effort to appease the customer we offered the full deposit back and the termination of the contract. In an email he stated that the full deposit was unreasonable and would accept 3k. We sent the check for 3k and wrote ''final settlement'' on the face of the check; the check was cashed by the customer. Now, two months later the customer has contacted us wanted the remaining balance paid to him. (He states that the new landscaper charged a lot to remove the work we put in). We replied that the issue was resolved when he cashed the settlement check. Are we correct? If he did sue in small claims can we countersue for not allowing us to complete the rest of the contract as it was originally written? (The breakdown started because the customer wanted to change the plans and we did not have the open time to be at his house when he wanted us there).


Asked on 6/20/07, 6:43 pm

2 Answers from Attorneys
Johm Smith tom's

Re: Final Settlement on Cashed Check

it sounds like you don't need to worry about this, but you can contact our NV member firm it is does not go away. NanceGroup.com

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Answered on 6/20/07, 7:01 pm
Adam Breeden Breeden & Herbe, Ltd.

Re: Final Settlement on Cashed Check

You situation is governed by a very specific part of Nevada's Uniform Commercial Code, NRS 104.3311 (accord and satisfaction). While in many cases the "final settlement" trick will not work, under the fact scenario you present the acceptance of the payment is probably valid to end the dispute. If you are pursued for more money, you need a good attorney familiar with commercial law and you should contact my office. It sounds like the customer is trying to "have it both ways" and his election to take the check likely bound him given the facts you stated.

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Answered on 6/20/07, 8:51 pm


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