Payee put stop pymt on check with verbal contract- Can I sue for Face amount of check

[NickL30]

What is the name of your state (only U.S. law)? New Jersey


Here is a summary of the situation
On March 25, 2018, I received a personal but bank 'counter check' in the amount of $25,000.00 payable to myself as part of a verbal agreement of the sale of my interest of a business which I was a silent partner in with another person. This check was one of four checks I received totaling $100,000. The other three checks were post dated 4/25/18, 5/25/18, 7/25/18.

Two days later I was informed this check payable to myself was returned on March 28, 2018 unpaid due to a Stop Payment as my bank had informed me of the reason that this check I deposited was returned to me

I have contacted the person who wrote the check to me however I have not yet heard back. I have also sent a 'demand' letter for the face amount (plus $12 fee which I was assessed), however I have not heard anything back from the payor (writor of the check). I also tried to reach the other partner however he has not responded either.

Can I sue for the face value of the check which the payor put a stop payment on without any prior or current notice or responding to the 'demand letter I had sent'??

 

[FlyingRon]

Certainly, you can sue. I can almost guarantee the other three checks aren't valid either (and "post dating" means squat with regard to check honoring).

Whether you can win and how much depends very much on what the nature of this contract is (if such even exists) and what you are out by the breach.

 

[NickL30]

But it was a verbal agreement between the person who wrote me the four checks and myself. The writer did not inform me of anything from when he wrote the first check to when I deposited it which was 24 hours or first business day after he wrote the March check since March 25 was a sunday


Doesn't a check itself with the Payors signature create a contract because a check is a negotiable instrument with the payors signature payable today me, unless he provides a defense to why he stopped payment??
What about suing under bad check laws alone???

 

[HRZ]

bad check laws may not apply to post dated checks

An oral deal for such large sums might run afoul of statute of frauds ..did you check ?

I'd be of view no sale took place ...step back and aggressively manage your interest?

 

[not2cleverRed]

But it was a verbal agreement between the person who wrote me the four checks and myself. The writer did not inform me of anything from when he wrote the first check to when I deposited it which was 24 hours or first business day after he wrote the March check since March 25 was a sunday


Doesn't a check itself with the Payors signature create a contract because a check is a negotiable instrument with the payors signature payable today me, unless he provides a defense to why he stopped payment??
What about suing under bad check laws alone???

The problem with oral agreements is they don't have a paper trail.

I strongly suggest you write to this person (certified) and state that due to the stop payment on the check, you're calling the deal off.

If the person wants to proceed, insist on a written agreement, reimbursement of any fees you had to pay, and consequences should future amounts not be paid according to schedule. For the amount of money that you are talking about, it's worth it to protect yourself.

 

[FlyingRon]

H.Rod... You need to check the dates on the forum when you post here. This thread is nearly two months old. Posters don't tend to hang around that long waiting for answers.