If I was inadvertently overpaid on an invoice by $1500, do I legally have to refund the money if 2 years have gone by?
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If I was inadvertently overpaid on an invoice by $1500, do I legally have to refund the money if 2 years have gone by?
This was over 2 years ago. I never realized the overpayment was made and now the client, who is in another state, wants the money back. I do business s a corporation. I would pay it but I do not have the funds currently.
Asked on January 17, 2014 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
The passage of time does not allow you to keep the money, unless the statute of limitations, or time period to sue, has expired. Unfortunately, in most states, such as yours, the relevant statute of limitations, that for contracts. is typically 4 or more years. Therefore, the client could most likely bring a lawsuit against you to recover the money. They may not choose to, if they feel it's not worth the time and cost, but they appear to have the legal right to sue you.
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