News: Contract Law
Contract law training: Part payment 'can present legal problems'
21 April 2009
Accepting a cheque for part payment can lead to a number of issues which could require contract law training, an organisation asserts.
DWF warns that some customers are able to manipulate regulations to avoid paying the full quantity if a business is not careful about its response.
Litigation partner at the legal firm David Astbury says a cheque for partial payment which claims to be in full and final settlement can be considered binding.
"Often the part payments are accompanied by allegations about the quality of goods and services provided or some other complaint," he asserts.
Cashing this will likely be deemed as acceptance of these terms and the portion of the money is often presented with allegations about the quality of service.
He advises that contract law training could allow staff to recognise the financial implications of a complaint and can allow workers to respond in the correct manner to this situation.
Contract law training was recently highlighted by Richard Nicholas, a lawyer with Browne Jacobson, who told ContractorUK that industry members should be aware of the terms and conditions when working with another's standard form.
