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Joint checks in general When joint checks are involved, two payees must endorse the check in order for that check to be deposited. For example: a contractor may issue a joint check that their subcontractor and their subcontractors supplier must both endorse before payment can be released.
What is an example of a joint check?
Heres an example scenario. Lets say youre owed $80,000 for materials that you furnished to a subcontractor three months ago. You have yet to receive payment and may need to move forward with filing a mechanics lien. To avoid this and offer some payment, the general contractor writes up a joint check for $65,000.
How do you handle a joint check?
A joint check is a check made out to two parties (i.e., the prime contractor and subcontractor, or subcontractor and second-tier subcontractor, etc.) that can be cashed when signed by both parties. Typically, provisions for joint checks are agreed to in the underlying construction contract.
What is the joint check rule in California?
1 Under the California Rule, the contractors issuance of a joint check discharges both the contractor and its surety from liability to lower tier contractors/ suppliers.
How do joint check agreements work?
When joint checks are involved, two payees must endorse the check in order for that check to be deposited. For example: a contractor may issue a joint check that their subcontractor and their subcontractors supplier must both endorse before payment can be released.
Writing a Joint Check If it needs to be written to two or more companies, be sure to write out the word and. You may also want to write the words jointly or as joint payees to ensure that bankers notice that the check goes to two parties instead of just one.
joint check agreement
JOINT PURCHASE AGREEMENT
THIS AGREEMENT IS A LEGALLY BINDING CONTRACT WHEN SIGNED BY BOTH PARTIES. READ IT CAREFULLY. IF YOU HAVE ANY QUESTIONS ABOUT YOUR RIGHTS OR. OBLIGATIONS UNDER
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