Joint Check Agreement Form With Payment
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FAQ
The ?joint check rule? means that whenever an owner or a general contractor issues a joint check to a subcontractor and the subcontractor's material supplier, the material supplier endorsing and depositing the joint check is certifying that it has been paid all amounts due up to the date of the joint check.
A joint check, also sometimes called a ?two party? check, is payable to two parties. To cash the check, both parties must endorse the check. Joint checks are used by owners to ensure general contractors will pay their subcontractors and material suppliers.
Simply put, a joint check is a check made payable to two or more parties, such that both parties must endorse the check prior to deposit. A joint check agreement, therefore, is a contract through which one party agrees to (or gives permission to) make payment in the form of joint checks.
An example of a joint check agreement from the construction industry would be where the prime or general contractor agrees to issue a check jointly to the first-tier subcontractor and that sub's material supplier. Joint checks agreements can be used in any industry.
Writing a Joint Check If it needs to be written to two or more companies, be sure to write out the word ?and.? You may also want to write the words ?jointly? or ?as joint payees? to ensure that bankers notice that the check goes to two parties instead of just one.
