Cashing a cheque, legal implications ?

[Georgyporky]

I complained to a tour operator about a recent holiday.
After nearly a month, we've received a cheque for £x as a "gesture of goodwill".
The accompanying letter gives no details as to how this figure has been calculated.
I've written back, claiming that I want £y, & justifying our actual losses.
( y = 3x )

I'd like to cash the cheque, but what concerns me is that by doing so am I deemed to have accepted their offer, & they'll make no further payment?
Or is it best to wait for the outcome before paying it in ?

Thanks for your help.

I would imagine they will assume you’ve accepted the offer. Don’t bank it yet, wait for them to reply

If they owe you money then you are entitled to cash the cheque. You have already said that it is not the full amount owed.

This is legal. Please don't guess.

Can I just check the formula, are you asking for 3 times your actual losses?

The gesture of goodwill youve received, does that cover your actual losses?

@CyberCritical I'm claiming for my actual losses, which happens to be 3 times what I've received. e.g they sent £5, but I've lost £15 (substantially more of course !).

@VeniVidiWeeWee

Brahumbug · Yesterday 20:00

If they owe you money then you are entitled to cash the cheque. You have already said that it is not the full amount owed.
This is legal. Please don't guess.

I am not guessing. Accepting the payment does not imply that you accepted a full and final settlement, the amount has been disputed by the OP and she is entitled to cash the cash in lieu of a final settlement.

Posted to soon!
There is plenty of case law to support my assertion, especially as the OP has outlined her losses and the payment was a ' gesture of good will' rather than a complete settlement.
We had a similar problem with a client, though in our case, the payment it was sent as a full and final settlement. The judge was not impressed that they thought £2000 for settlement of an £11500 debt was reasonable and we won.

D and C Builders v Rees,
Bracken and Another v Billinghurst
Day v McLea
Inland Revenue Commissioners v Fry

But as with all these things, take face to face legal advice rather than the internet!

As a pp says, the wording you need to look out for is 'full and final settlement' and if they say that in the letter that came with the cheque, then by cashing it you are accepting those terms.

If it doesn't say that, then write back and say that you are happy to accept the cheque as an interim part-payment of what they owe you; and you could then go ahead and pay it in.

Make sure you explain to the company that you are accepting the cheque they have offered "without prejudice" so this indicates you are not closing the matter. And will still be pursuing the full amount of compensation you feel you are owed.

Many thanks for all your replies.

The letter did not state "full & final settlement".

I've sent a follow-up e-mail stating that I'm cashing the cheque as part payment of my claim.