Legal Question in Business Law in Massachusetts

Re: law regarding checks

Not on the face of the check, but an annotation on the reverse side creates a restrictive endorsement (akin to "for deposit only"). Secondarily, however, there must be an actual dispute over the amount of the bill for which the check is tendered, and the tender must be a good faith resolution. That is to say, you cannot pay a $1,000.00 invoice with a check for $0.01 and expect it to be upheld in a court.

Best wishes,

LDWG

Re: law regarding checks

Massachusetts courts have held that the answer to the question is 'yes,' unless the payee affirmatively indicates in some way that the cashing of the check does not constitute an accord and satisfaction of the debt (in other words, that the payment does not, in the payee's mind, constitue payment in full). This can be done on the check tself, a separate writing, or even orally communicated to the payor prior to cashing of the check.

Re: law regarding checks

Not necessarily.