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  • Category: Miscellaneous

    Can we rely on a blank cheque?

    When we argue with persons who owe us money they, sometimes, would say that they are ready to give us a blank cheque as security. Actually, we are interested in our money and not more than that. But over-enthusiastic persons would commit themselves. I am in doubt as to why can't the debt be settled if the cheque for the amount can be given. Would you take the blank cheque as a guarantee for payment? Is it reliable and legally tenable?
  • #723995
    Offering cheque instead of returning the money is nothing but a delay tactics. Those who offer cheque usually do not know that if the person to whom cheque is offered is presented for payment and it gets dishonoured then, the person writing the cheque will become liable to face legal action.

    Borrower who want more time and don't have the intent of paying offers blank cheques. This does offer some condolence to the lender for time being but not the money itself. This cheque can be used against the writer of this cheque if it gets bounced.

    For lender to be safe and willing to take legal action in case of default of payment must definitely take a blank cheque for the borrower and use it for proving his claim once the borrowers fails in paying his sum of money.

    Live before you leave.

  • #723998
    Some people give us the cheque and advise the bank to stop payment to that cheque. If they give a post-dated signed cheque as per the date of the cheque you can present that cheque to the bank and if they dishonour that cheque saying that there is no money in the account, it amounts to cheating. But the account holder can advise the bank to stop payment and that will not come under cheating. So it is of no use to take a blank cheque. Only thing is that it proves that the other person has to pay us some money. More than that it will not serve any purpose. If the blank cheque is not getting encashed you can go to legal action on the person who has given you the cheque. These days we are seeing many defaulters who take the money and never repay the money. That is why it is never safe to give loans to some people thinking that we will get a higher rate of interest. Many time it may happen that we may not get back our original money also. So it is better to keep the money in safe instruments where there is a guarantee for our original even though the rate of interest is less.
    always confident

  • #724013
    What is the use of a blank cheque if it is not signed by him? Nobody can sign a cheque without a writing amount in it. Only a person who has blind faith in someone may sign on a blank cheque or blank paper.
    But if a person has borrowed money from any person and he says this, it means he is a big liar or fraud.
    I think nobody should delay if payment is due and he is in a position to pay debt also. It is a painful trait of a person that he invents a new pretext to delay the payment to a person who succoured him when he needed money.
    If someone is ready to give a signed blank cheque, it can be taken immediately. He will legally be bound.

  • #724015
    Blank cheques can be accepted if the the person offering you such a cheque is closely related to you. In that situation, he cannot deceive you. If you receive a blank cheque from an unknown person with whom you had a little connection, the cheque in that case may be nothing but a kind of eye wash for you. He is pretending to make a prompt payment but the story may be otherwise. Hence beware of such frauds and stay safe.

  • #724109
    What I feel the blank cheque is the ploy to buy time.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #724116
    I agree that he intends to delay but he will never give a signed blank cheque, if you depict his cheque in your bank account and suppose it is bounced for not having a sufficient amount he will drag into court to face legal trials. I don't think if someone would like to face this unwanted situation.

  • #724131
    What is a blank cheque? Will anyone, with a bit of common sense, accept a cheque that is not signed? The intent of the thread, going by the content, fails there itself. A cheque leaf that is signed can be accepted as security and has legal validity. The doubt of the author as to why a cheque needs to be given if one has a sufficient amount in his account is, to say the least, foolish. Let the author be informed that a blank signed cheque is given as security for an amount that can be retrieved by the other person on a later date that has been agreed upon. On submitting the cheque on the agreed date/period and the cheque bouncing for lack of funds, one can approach a court of law to seek redressal.
    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #724135
    Blank cheque is not a empoty cheque leaf which is not valid. Blank cheque should have the signature of the cheque holder. Only the amount and date column should be left blank. We can accept such signed cheques, but we should know the person who is issuing the cheque. If the cheque bounces, the account holder will be in trouble. It is better to avoid blank cheques as far as possible. It is a delaying or cheating tactics.
    No life without Sun

  • #724169
    A gullible person may get impressed by seeing a blank cheque but it has no legal standing and is only as good as a sheet of paper. It does not solve the problem and also of no use to the receiver. It is used in colloquial language that the person tries to convince that if you do not believe him he can even give a blank cheque (of course signed one only) where we can write any amount. So, this is a technique to assure that intention to repay is there and we should wait for some time when the money is really refunded. Nowadays no one relies on such assurances. In fact we do not feel happy till it reflects in our account.
    Knowledge is power.

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