What does the memo line mean on a check?
What does the memo line mean on a check?
Memo line: The memo line is a space provided for the check issuer to add any notes regarding the purpose of the check, invoice/transaction numbers, or other recordkeeping information. Amount of check: The amount of the check is the same number written in the dollar box, but it’s written in words instead of numbers.
Does the memo on a check matter?
No, it is not legally binding. One party may not unilaterally change the amount owed or terms of payment by doing this. There is a common myth that the memo line on a check has legal force – it doesn’t. Bottom line, a recipient of a check without being bound by whatever may have been written in on the memo line.
Can the recipient of a check write in the memo line?
No, it is not. The fact is that one party may not change the amount owed or terms of payment by writing in such a notation. There is a common myth that the memo line on a check is legally enforceable force but it isn’t. Therefore, while it helps to identify the purpose of a check, it does not bind the recipient.
Is it safe to give someone a blank check?
Never hand someone a blank check. They can fill it out and withdraw money from your bank account. Treat checks like cash. This is why employers ask for a voided check to set up direct deposit, not a blank one.
Can someone cash a blank check?
Although you don’t have to fill in the payee line, you should. Leaving the line blank creates what’s called a blank check, meaning anyone holding the check can cash it. If you make the check out to “Cash,” that also allows anyone to cash it.
Is cashing a check a form of acceptance?
Cashing the check is considered to be acceptance of the offer and extinguishes the debt. There must be no doubt that the debtor intends the check to settle the debt entirely.
When to use a memo line on a check?
Ultimately, contractors and suppliers should pay close attention to the memo line when depositing a check from their customer. If the check has “Paid in Full,” “Full and Final Settlement” or similar language written in the memo field or endorsement area, ask for your customer to cut a new one.
Is the payment in full memo line legally binding?
Under LSA-CC art 3071 and the jurisprudence, an agreement of compromise need not be in writing, unless it deals with an immovable. Here, there was a writing, to-wit, both the checks and the invoice were marked ‘Paid in Full’…The checks were deposited in Plaintiff’s bank account and paid without question.
What should be included on a final payment check?
There are no “magic words” that reflect when a payment is intended as a full and final payment of a disputed debt. Possible language that might be noted on a check includes: Final Payment; Payment in Full; Satisfaction in Full; Full Settlement; Paid in Full
Can a memo box give notice to the recipient of a check?
It is thus less likely that a notation in a memo box is going to be deemed to give notice to the recipient of a check that the issuer is attempting to impose a condition that will be triggered by the acceptance of a check.
Ultimately, contractors and suppliers should pay close attention to the memo line when depositing a check from their customer. If the check has “Paid in Full,” “Full and Final Settlement” or similar language written in the memo field or endorsement area, ask for your customer to cut a new one.
Under LSA-CC art 3071 and the jurisprudence, an agreement of compromise need not be in writing, unless it deals with an immovable. Here, there was a writing, to-wit, both the checks and the invoice were marked ‘Paid in Full’…The checks were deposited in Plaintiff’s bank account and paid without question.
It is thus less likely that a notation in a memo box is going to be deemed to give notice to the recipient of a check that the issuer is attempting to impose a condition that will be triggered by the acceptance of a check.