Legal Definitions - two-party payment

Definition: Two-party payment refers to a single payment made by check to two people, usually for the sum of the amount due to each person.

Example: John and Jane are roommates who share the rent and utility bills. They receive a bill for $1000, with $500 due for rent and $500 due for utilities. To make the payment, they write a check for $1000 and both of them endorse it. This is an example of a two-party payment.

This type of payment is commonly used when two parties share an expense and want to make a single payment to simplify the process. It is also used in situations where two parties are owed money and want to receive payment together.