This Joint Check Agreement is made between two parties which allows one party to pay
balances due by writing a check that is issued to two or more payees. This type of
agreement is most often used in the construction industry. It allows a general contractor
to make payments due under a subcontract to both the subcontractor and a materials
supplier. This document contains numerous standard provisions and should be
customized to fit the needs of the parties.
JOINT CHECK AGREEMENT
THIS JOINT CHECK AGREEMENT (the “Agreement”) entered into
this ____ day of ____________ [MONTH], _________ [YEAR], among
_____________________ (the “Contractor”), __________________ (the
“Subcontractor”) and _________________ (the “Supplier”), collectively referred to
herein as the “Parties”.
IN CONSIDERATION of the premises and of the mutual covenants and
agreements herein contained, the Parties hereto agree as follows:
1. The Parties hereto acknowledge and agree that the Parties executing this
Agreement are duly authorized agents of each of the Contractor and Subcontractor and
have all necessary power and authority to enter into this Agreement.
2. The Parties hereto hereby acknowledge and agree that any and all invoices
submitted by the Contractor to the Subcontract in respect of any materials (the
“Materials”) purchased for the completion of the project which entails
___________________________ [DESCRIPTION OF PROJECT] (the “Project”)
shall be paid by a check drawn by the Contractor in the amount of any unpaid invoice not
exceeding the amount due to the Subcontractor and shall be made payable jointly to the
Contractor and the Subcontractor.
3. The Parties hereby acknowledge that the purpose of this Agreement is to
ensure payment of all invoices rendered by the Contractor for the sale of any and all
Materials to the Subcontractor for the Project.
4. The Parties hereby agree that in the event of death, dissolution, or
insolvency of the Subcontractor, the Contractor has the right to pay the Supplier on
behalf of the Subcontractor for any and all unpaid invoices.
5. The Parties hereby acknowledge and agree that the provisions and terms
of this Agreement shall not constitute an assignment of funds, and the execution by the
Parties of this Agreement shall not affect or otherwise impair any other third parties’
rights, which the Supplier may have or will have in the future in connection with the sale
to the Subcontractor of any Materials for the Project.
6. The Parties hereby acknowledge that any money owing under this
Agreement to the Contractor is the property of the Contractor and shall not be subject to
attachment by any trustee in bankruptcy.
7. The Contractor may, at any time, terminate this Agreement upon the
Contractor providing written notice to the Subcontractor and to the Supplier.
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8. The Subcontractor hereby acknowledges and agrees that any and all
invoices in respect of the Project are current and are or shall be paid in full.
9. The Subcontractor hereby further acknowledges and agrees that all
invoices in respect of the Project shall and will be paid in full within the time frame and
upon the terms as agreed to between the Supplier and the Subcontractor.
10. The Contractor and the Subcontractor hereby acknowledge and agree that
any and all payments made to the Supplier for Materials for the Project, shall and will be
applied against any invoices or outstanding accounts, with the exception of any specific
invoices for any Materials which have been paid and are referenced on joint check.
11. The Contractor hereby acknowledges and agrees that it shall supply to the
Subcontractor a statement of account each and every month by the ______ day by way of
regular U.S. Mail or facsimile, together with copies of all invoices which are due for
payment by the Subcontractor in respect of the Project.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed as of the date first above written,
DATED this _________day of ____________ [MONTH], _____ [YEAR].
I have authority to bind the Company. I have authority to bind the Company.
I have authority to bind the Company
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