A joint check is used to pay a supplier through the direct contractor. How should the payee line be handled?
Correct Answer
D) Make it payable to both the contractor and the supplier or subcontractor.
List both contractor and supplier as payees so both endorse the joint check. This identifies the payment method; retain payment and release evidence as well. Source: https://web.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/How_To_Prevent_A_Mechanics_Lien.aspx
Why This Is the Correct Answer
List both contractor and supplier as payees so both endorse the joint check. This identifies the payment method; retain payment and release evidence as well. Source: https://web.cslb.ca.gov/consumers/legal_issues_for_consumers/mechanics_lien/How_To_Prevent_A_Mechanics_Lien.aspx
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