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Joint check agreement template

Joint check agreement 2025

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The Joint Check Agreement outlines the responsibilities and payment arrangements between three parties: Party A (the Paying Party), Party B (the Prime/Subcontractor), and Party C (the Supplier/Subcontractor). It establishes that Party C will supply materials and/or labor to Party B for specified projects, with payments made via joint checks to ensure that Party C's invoices are honored. The agreement includes provisions for notification of insufficient funds, endorsement of checks, and the obligations of Parties A and B in case of default. It emphasizes that this agreement does not make Party C responsible for the performance of Parties A or B and preserves Party C's rights under applicable laws.

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2012	4.9 Satisfied (412 Votes)

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What is a joint check agreement?

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.

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