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Endorsements of Joint Checks

3 months ago

Hello: I had a follow-up question regarding Joint checks? I found this on your website https://www.levelset.com/blog/what-is-a-joint-check-agreement/.

I ask because I have a large check from our prime written to us and the supplier. I need to pay this amount to the supplier and need some advice on how we should endorse the check to forward to our supplier. The check is written to both companies Our company ‘and’ material supplier. So the ‘and’ is the issue.

Any help would be appreciated.

Thanks,
Peter Jaravata

CEO Levelset
24 reviews

Since the check is written to both parties, both need to sign it to cash it.  If one party signs it, the bank should refuse to cash it.

If you are happy to forward the entire check to the other party, then you can sign for your part, and send a check with one signature to the other party. The other party will be able to sign it, and cash it.

If you don’t want to send the entire check to the other party – because the check amount is more than what you owe the other party – then you and the other party have to work something out.

There is nothing special about how you sign the check. You will sign it just like any other check. The issue is that both parties need to get their signature on it before it can be cashed.

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