Legal Question in Business Law in Washington

Company Loses Payment Checks, Is The Clients Still Liable

If you make a payment to a business and due to it's negligence or error the business loses your payment are you liable for payment?

Scenario:

A vehicle is purchased and the buyers pay the seller a 1500.00 down payment. The seller contacts the buyer and states that they have lost the check for payment and would like another check.

The buyer states that will not pay and the seller threatens to send the account to collections if it is not paid.

Is the client still liable even though they paid as agreed?


Asked on 9/27/05, 2:18 pm

1 Answer from Attorneys
James Vasquez In Pacta, PLLC

Re: Company Loses Payment Checks, Is The Clients Still Liable

You must first find out if the check has been cashed. If not, then put a stop payment on the first check and issue the seller a second check for payment. If the check has been cashed, provide the other party with proof that they cashed the check, and inform them that you are not liable for any further payment as it has already been made.

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Answered on 9/27/05, 2:31 pm


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