Legal Question in Civil Litigation in Florida

If a hold is placed on a check, mailed to the recipient, and it is verbally agreed upon that once a contract/promissory note is signed the hold on the check will be lifted and they will be allowed to cash it... is that considered a "worthless check" under florida law? There was no intent to defraud the recipient and no goods/service were taken.

The reason behind the check was to ensure the recipient that once they sign a contract/promissory note that they will have instant access to the money.

Asked on 9/07/13, 4:10 pm

1 Answer from Attorneys

Barry Stein De Cardenas, Freixas, Stein & Zachary

Hard to answer this since I am not sure what a "hold" on a check actually means. Does it mean there was an agreement that the check would not be cashed until another event occurred, the contract/promissory note? (whatever that means) was signed and somehow funding occurred? I don't think the check can be considered worthless under these facts as restated. It would also mean that someone breached the agreement by cashing the check prematurely? More facts are needed to actually answer this question with any certainty. The payment of something with a check usually is to support some consideration from the other party. Here you say no goods/services. Was it a debt being repaid? was the contract/note from yet another party? Seek some legal guidance with direct questions and all the paperwork

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Answered on 9/08/13, 5:59 am

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