Feel Like Im Being Blackmailed!

[Big Al]

I am from California and sold a small business about 3 years ago.
( Sole Proprietorship ) There was a down payment and monthly payments with a small balloon payment of $3500 due on 8-1-00. everything went fine until the balloon payment. After it was 3 weeks past due I notified the individual and he told me that he would put it in the mail. I recieved the check today but for only $2300 along with a letter of things that he wasnt happy with. He also wrote that by cashing the check it would mean that I agreed to his lower amount, which I dont! Otherwise he wanted to be put on a payment plan over a period of time and "maybe" he could pay the full amount but would not guarantee anything.I do need the money to pay off previous debt associated with this business. My gut reaction is to cash the check, demand the rest of the money and see him in small claims if he fails to pay. I also know that he has sold the business as of 6 months ago to another person before paying me. I have our contract and payment schedule in writing and notorized. What is my best course of action?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Big Al:
I am from California and sold a small business about 3 years ago.
( Sole Proprietorship ) There was a down payment and monthly payments with a small balloon payment of $3500 due on 8-1-00. everything went fine until the balloon payment. After it was 3 weeks past due I notified the individual and he told me that he would put it in the mail. I recieved the check today but for only $2300 along with a letter of things that he wasnt happy with. He also wrote that by cashing the check it would mean that I agreed to his lower amount, which I dont! Otherwise he wanted to be put on a payment plan over a period of time and "maybe" he could pay the full amount but would not guarantee anything.I do need the money to pay off previous debt associated with this business. My gut reaction is to cash the check, demand the rest of the money and see him in small claims if he fails to pay. I also know that he has sold the business as of 6 months ago to another person before paying me. I have our contract and payment schedule in writing and notorized. What is my best course of action? <HR></BLOCKQUOTE>


My response:

I need to know EXACTLY what he said in his letter to you - - quote it verbatim;

I need to know EXACTLY what he wrote on your check - - quote it verbatim.

IAAL


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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[Big Al]

The check says, "Full and final payment/Sealife And P.O.P. agreements"

The letter says, " Enclosed please find check #201 for $2300 as full and final payment for the buy sell of Sealife Windchimes and Pacific Ocean Pottery. If this is acceptable please cash the check and thanks for your support.
If not agreeable please return check to me. I will attempt to develope a payment plan but cannot guarantee a monthly amount or a time period "

By the way this letter was sent just regular mail.

Thanks in advance for your advice

Al

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Big Al:
The check says, "Full and final payment/Sealife And P.O.P. agreements"

The letter says, " Enclosed please find check #201 for $2300 as full and final payment for the buy sell of Sealife Windchimes and Pacific Ocean Pottery. If this is acceptable please cash the check and thanks for your support.
If not agreeable please return check to me. I will attempt to develope a payment plan but cannot guarantee a monthly amount or a time period "

By the way this letter was sent just regular mail.

Thanks in advance for your advice

Al<HR></BLOCKQUOTE>

My response:

In California, there MUST be a "bonifide" disagreement in order for a "novation" and an "accord and satisfaction" to occur. Under California law, if there is no bonifide disagreement, you may STRIKE OUT the verbiage on the check.

His letter to you does NOT speak of a bonifide disagreement, albeit, there's no disagreement of any type.

Go ahead, cross out the verbiage on the check, cash the check, wait for it to clear, and then write him a letter demanding the balance by CERTIFIED BANK CASHIER'S CHECK ONLY, within 5 calendar days. When he fails to comply, sue him in Small Claims court for the balance under a breach of contract theory.

Without a bonifide disagreement or dispute, you cannot hold someone's money hostage. That's the way the court will rule on the issue.

IAAL



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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."