Question

Having failed to clean his dorm room for several months, Fred Creek hires Wesley Tower Services, Inc. to clean his toxic room for a $1,000. Fred Creek pays to Welsey Tower Services, Inc. a down payment of $500 by check at the time of services and Wesley Tower Services, Inc. invoices him for the remaining $500. Fred, feeling sneaky and clever because he was taking B-Law II, decides to send a check to Wesley Tower Services, Inc. for $300 with "PAID IN FULL" typed on the check. If Wesley Tower Services, Inc. deposits the check, can the company recover the $200 Fred still owes them?  

Answer 1

Facts of the case :  Wesley tower services has provided cleaning services for a consideration of $ 1000 and fred has made initial payment of $500 at the time of service and paid only 300 from the remainder by a cheque mentioning "Paid in Full".

Provision of Law: Under the contract Act , a plantiff( wesley) can recover compensatory damages if the defendant(fred)  has committed fradulent misrepresentation. the court will look for the following factors

1. a false representation was made

2.when made the defendent(fred) knew that the representation was false or made the statement recklessly without knowlege of truth.

3.The plantiff(wesley)  has suffered loss .

Conclusion: The given case falls under intentional misrepresentation of facts as fred had intentionally made the mistake in order to avoid the remaining payment of $200 , so wesly has the right to recover the balance amount as he has completed his part of service for a consideration of $ 1000. Therefore if Wesley can recover the balance of $ 200 even if its written paid in full in the cheque.