Legal Question in Consumer Law in California

Partial Reimbursement for Purchase Agreement Addendum

I recently purchased a new home. Prior to closing, as an addendum to the purchase agreement, the builder agreed to provide me with additional services (the removal and replacement of concrete surfaces) or a credit equivalent. We opted for the credit equivalent. The builder gave us a check for an amount that was lower than I anticipated. I immediately asked for justification as to how the amount was derived, and assured that it would be forthcoming. In the interim I was told (verbally) to proceed with cashing the check, assured that everything was in order, and told that if an error had been made it would be corrected shortly. I cashed the check and continued to ask for justification as to how the amount was derived. The builder has never provided that justification. In the meantime, my own research (written quotes from contractors) has indicated that the amount is likely to be low by as much as several thousand dollars. I recently sent in a request to come to closure on the issue, and the builder stated that since we cashed the check the matter is closed. Does our cashing of the check for what amounts to only a portion of what we were owed indicate we accepted that as full payment?


Asked on 12/22/03, 5:34 pm

2 Answers from Attorneys

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Partial Reimbursement for Purchase Agreement Addendum

Even if there is a statement on the check to the effect that cashing check is full and final settlement of the matter, the Civil Code overrides such a statement so that the matter is not closed. Call me directly at (619) 222-3504.

Read more
Answered on 12/27/03, 1:51 pm
Donald Holben Donald R. Holben & Associates, APC

Re: Partial Reimbursement for Purchase Agreement Addendum

Cashing of the check only close matter if stated on the check and you executed it with that knowledge and statement included. Call to discuss if you wish.

Read more
Answered on 12/23/03, 11:21 am


Related Questions & Answers

More Consumer Law questions and answers in California