A legal curiosity

Author
Discussion

blindswelledrat

Original Poster:

25,257 posts

231 months

Thursday 27th August 2015
quotequote all
Not a big deal, just purely curious.
A chap came into my office today with a cheque that we had sent him 18 months ago, which the bank would not bank now and asked us to reissue it.
We are doing,obviously, but I was just curious as to whether we were legally obliged to.
No biggie, just interested

Thanks

Jasandjules

69,825 posts

228 months

Thursday 27th August 2015
quotequote all
A cheque is a bill of exchange and a guarantee of payment....

blindswelledrat

Original Poster:

25,257 posts

231 months

Thursday 27th August 2015
quotequote all
Of infinite duration?
I assume so but somehow it equally feels like there should be a limit.
THen again, it probably doesn't. You (I) should know it's never been cashed hence should never assume you don't have to pay

PurpleMoonlight

22,362 posts

156 months

Thursday 27th August 2015
quotequote all
There is a limit, 6 years.

Arguably the banks have no legal right to refuse to accept the cheque within the 6 years, but try telling the bank that!

Pete317

1,430 posts

221 months

Thursday 27th August 2015
quotequote all
A cheque normally expires after 6 months, after which the banks will refuse to bank it - for example to prevent you from inadvertently going overdrawn.

However, as the original transaction has not yet been completed, you are legally bound to do whatever has become necessary to allow the completion of the transaction - in this case by issuing another cheque.

Edited by Pete317 on Thursday 27th August 13:42