help- payment by cheque-legal view

[trashcansinatra]

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

[Nattie]

Re: help- payment by cheque-legal view

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

[trashcansinatra]

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 ?

[Guest]

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 . . ."

[Amy]

Re: help- payment by cheque-legal view

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.

[Nattie]

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

[thephoenix]

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.

[trashcansinatra]

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] 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

[Nattie]

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?

[trashcansinatra]

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?

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

[Guest]

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.

[trashcansinatra]

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.

i hope so but i need to prove it and can't find this case you mentioned yet
i'll keep trying

thks

[trashcansinatra]

Re: help- payment by cheque-legal view

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

thks

[Sapphire]

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.

[trashcansinatra]

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.

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