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Home>Levelset Community>Legal Help> I am filing a lien Mon. For $4500.00, contractor sent a check for $2700.00 and wrote on the memo "Final payment"

I am filing a lien Mon. For $4500.00, contractor sent a check for $2700.00 and wrote on the memo "Final payment"

Minnesota

I am filing a mechanics lien Monday morning For $4500.00, The contractor sent me a check for $2700.00 and wrote on the memo "Final payment" for work done. If I cash that check will that void my mechanics lien ?

1 reply

Mar 1, 2021

Generally, cashing a check labeled "Final Payment" which represents an amount that is less than what is owed can be viewed as an agreement to settle the account for the amount on that check. Even if the memo line ends up not being binding, it could be costly and time consuming to prove that. So, it's likely best not to cash checks that appear "final" if the check doesn't represent full payment. Levelset discusses that in detail here: Are Checks with “Payment in Full” in Memo Line Legally Binding? Do They Affect Mechanics Lien Rights? 

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