Legal Question in Credit and Debt Law in Minnesota
Accepting merchandise in lieu of payment
If I accept as payment for a past due account, personal property in lieu of cash, two questions arise:
1 - How do I protect myself from the liability of stolen property, other claims on the merchandise, etc. In other words, how can I make sure that this merchandise is truly the customer's to give.
2 - What must I do to make sure my customer can be confident that his/her debt is legally paid.
Will a simple affidavit that provides assurances to the aforementioned concerns, signed by both parties, be legally binding?
Is there anything else that I, perhaps, haven't thought of?
1 Answer from Attorneys
Re: Accepting merchandise in lieu of payment
I can't think of any way to confirm that the property is not stolen unless the customer has a receipt or other evidence of purchase. A document which says that the debt is paid in full and signed by the creditor should be enough in any court of law, particularly if the creditor's signature is notarized.
Kent Gravelle
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