• Welcome to the LegalBeagles Consumer and Legal Forum.
    Please Register to get the most out of the forum. Registration is free and only needs a username and email address.
    REGISTER
    Please do not post your full name, reference numbers or any identifiable details on the forum.

help- payment by cheque-legal view

Collapse
Loading...
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • help- payment by cheque-legal view

    Hi

    can anyone tell me the law on payment by cheque
    if we gave someone a cheque in march but they decided not to bank it until april when is payment deemed to have been made

    i looked on the HMRC site and they said that payment by cheque to them would be when they receive it but is that the same for everyone in the eyes of the law ?

    plse advise

    thks

  • #2
    Re: help- payment by cheque-legal view

    A cheque is valid for 6 calender months from the date of issue.

    Comment


    • #3
      Re: help- payment by cheque-legal view

      thks but unfortunately that does not answer the question ?
      would the law recognise me paying in march or april ?

      Comment


      • #4
        Re: help- payment by cheque-legal view

        Payment was made when you gave them the cheque. It is a well settled principle of law that a cheque is to be treated as cash. In the case of Nova (Jersey) Knit -v- Kammgarn Spinnerei [1977] Lord Wilberforce stated; "A seller may demand payment in cash; but if the buyer cannot provide this at once, he may agree to take bills of exchange payable at future dates. These are taken as equivalent to deferred instalments of cash . . ."

        Comment


        • #5
          Re: help- payment by cheque-legal view

          Originally posted by trashcansinatra View Post
          Can anyone tell me the law on payment by cheque
          if we gave someone a cheque in march but they decided not to bank it until april when is payment deemed to have been made

          i looked on the HMRC site and they said that payment by cheque to them would be when they receive it but is that the same for everyone in the eyes of the law?
          It cannot be deemed paid in March if the money is still in your account in April.

          Comment


          • #6
            Re: help- payment by cheque-legal view

            I have got some additional information from APCS website
            http://www.apacs.org.uk/resources_pu...s2007FINAL.pdf

            page 23 relates to cheque validity
            and page 2 relates to the laws around cheques
            Bills of Exchange Act 1882, Cheque Act 1957 and 1992

            Comment


            • #7
              Re: help- payment by cheque-legal view

              A cheque is a promise to pay the bearer. Once the cheque is made out to the bearer and you sign it, it then becomes a bill of exchange.

              The action of cashing the cheque is out of your hands. It is also the payers responsibility to ensure there are funds available to cover any issued cheque as it is a promise to pay.

              unfortunately that is the reality.

              Comment


              • #8
                Re: help- payment by cheque-legal view

                Originally posted by Cetelco View Post
                Payment was made when you gave them the cheque. It is a well settled principle of law that a cheque is to be treated as cash. In the case of Nova (Jersey) Knit -v- Kammgarn Spinnerei [1977] Mr Simon Berry QC, sitting as a deputy judge in the Chancery Division of the High Court stated; "A seller may demand payment in cash; but if the buyer cannot provide this at once, he may agree to take bills of exchange payable at future dates. These are taken as equivalent to deferred instalments of cash . . ."
                thks for all the replies
                the APCS website was useful but i couldn't see the answer
                it seems that there are conflicting views on here !
                i hope the answer is as above so i'm going to look up this case

                thks again

                Comment


                • #9
                  Re: help- payment by cheque-legal view

                  I think the question is really, what are the circumstances in which the advice given is needed for?

                  Comment


                  • #10
                    Re: help- payment by cheque-legal view

                    Originally posted by Nattie View Post
                    I think the question is really, what are the circumstances in which the advice given is needed for?
                    i was wondering when somebody might ask that
                    its a contract dispute which i can't give more detail about yet,sorry
                    i will tell when i can
                    i need to prove payment in march not april !

                    hope that makes it slightly clearer,sorry i can't say more

                    thks

                    Comment


                    • #11
                      Re: help- payment by cheque-legal view

                      A cheque is like a bill of exchange and is as good as cash in the hand and is treated as a cash payment.

                      If you gave them the cheque in March then you paid them in March, as I wrote above.

                      Comment


                      • #12
                        Re: help- payment by cheque-legal view

                        Originally posted by Cetelco View Post
                        A cheque is like a bill of exchange and is as good as cash in the hand and is treated as a cash payment.

                        If you gave them the cheque in March then you paid them in March, as I wrote above.
                        i hope so but i need to prove it and can't find this case you mentioned yet
                        i'll keep trying

                        thks

                        Comment


                        • #13
                          Re: help- payment by cheque-legal view

                          i can't find this case via google any idea where i could find it

                          thks

                          Comment


                          • #14
                            Re: help- payment by cheque-legal view

                            If you gave them a cheque in March then surely the bill in theory is paid, its not your fault if the person that receives it decides not to bank it till April imho.

                            Comment


                            • #15
                              Re: help- payment by cheque-legal view

                              Originally posted by sapphire View Post
                              If you gave them a cheque in March then surely the bill in theory is paid, its not your fault if the person that receives it decides not to bank it till April imho.
                              i think you are right i guess its like if you buy a tv by cheque its considered paid

                              i just want some case law or legislation to quote

                              thks

                              Comment

                              View our Terms and Conditions

                              LegalBeagles Group uses cookies to enhance your browsing experience and to create a secure and effective website. By using this website, you are consenting to such use.To find out more and learn how to manage cookies please read our Cookie and Privacy Policy.

                              If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here.


                              If you would like to cancel your registration please Contact Us. We will delete your user details on request, however, any previously posted user content will remain on the site with your username removed and 'Guest' inserted.
                              Working...
                              X