Joint Check Agreement by Contractor
What this document covers
The Joint Check Agreement by Contractor is a legal document that formalizes the financial relationship among the owner, contractor, and supplier (or seller) involved in a construction project. This form establishes that checks issued by the owner to the contractor for materials supplied by the seller will be jointly payable to both the contractor and the seller. This agreement aims to protect the seller by ensuring payment for materials supplied, distinguishing it from generic payment agreements by adding a collaborative payment structure among the involved parties.
What’s included in this form
- Identification of the parties: Owner, Contractor, and Seller.
- Statement of joint payment: Specifies checks issued by the Owner being payable to Contractor and Seller.
- Project identification: Details of the construction project for which the materials are supplied.
- Owner's guarantee: Ensures that the Owner guarantees payment of sums due from Contractor to Seller.
- Space for signatures: Includes designated areas for all parties to sign and date the agreement.
When to use this document
This form is particularly useful in construction scenarios where the contractor purchases materials from a supplier, and the owner wants to ensure that the supplier is paid directly. For instance, if the contractor is likely to experience cash flow issues, using a Joint Check Agreement can help reassure suppliers of imminent payments, thereby enabling smoother operations and material availability for the project.
Who needs this form
- Construction owners who want to secure supplier payments.
- Contractors dealing with suppliers for construction projects.
- Sellers of construction materials seeking assurance of payment.
- Parties engaged in multi-party agreements where financial obligations are shared.
Completing this form step by step
- Identify the parties involved by filling in their names and roles (Owner, Contractor, Seller).
- Specify the construction project by mentioning its name or description.
- Enter the date on which the agreement is being executed.
- Ensure all parties sign the agreement where indicated.
- Provide titles for each party (e.g., Owner's title, Contractor's title) to clarify their legal roles.
Notarization guidance
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
Get your form ready online
Our built-in tools help you complete, sign, share, and store your documents in one place.
Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to clearly identify all parties involved in the agreement.
- Leaving the project name or details blank.
- Not obtaining all necessary signatures before finalizing the document.
- Neglecting to specify the date of execution.
- Forgetting to clarify the roles of all parties involved.
Benefits of using this form online
- Convenience of instant download and filling at your own pace.
- Easy editing to customize the agreement to your needs.
- Reliable legal language drafted by licensed attorneys.
- Accessible anytime, providing flexibility in completing the agreement.
Looking for another form?
Form popularity
FAQ
When joint checks are involved, two payees must endorse the check in order for that check to be deposited. For example: a contractor may issue a joint check that their subcontractor and their subcontractor's supplier must both endorse before payment can be released.
Joint checks are common in construction. Joint checks are checks made out to two payees most often a subcontractor and the subcontractor's supplier.Owners and general contractors want to issue joint checks to ensure that subcontractors pay their suppliers, which helps avoid lien and bond claims by the suppliers.
Accordingly, the check should carefully name all joint payees and' for added caution, include after their names, the words jointly or as joint payees. It may also be wise to use a rubber stamp the check with the language This is a joint check and endorsements of all payees are required.
If the check is issued to two people, such as John and Jane Doe, the bank or credit union generally can require that the check be signed by both of them before it can be cashed or deposited. If the check is issued to John or Jane Doe, generally either person can cash or deposit the check.
If you're a guest and you decide to give a check to the couple, here's my etiquette tips: Write it out to the bride using her maiden name, write it out to the groom, or write it out to cash.But if the bride takes her time changing her name or doesn't at all (like me!), and a check is written out to Mr. & Mrs.
For example, if paying a married couple, address the couple as Mr. and Mrs. John Doe instead of Jane Doe and John Doe. If the couple is married but keeping distinct last names, or if the two payees are linked by business purposes, you will need to enter both their full names.
When joint checks are involved, two payees must endorse the check in order for that check to be deposited. For example: a contractor may issue a joint check that their subcontractor and their subcontractor's supplier must both endorse before payment can be released.
If the check is issued to two people, such as John and Jane Doe, the bank or credit union generally can require that the check be signed by both of them before it can be cashed or deposited. If the check is issued to John or Jane Doe, generally either person can cash or deposit the check.
