honouring a cheque

Discussion in 'Legal' started by ripowl, Sep 27, 2006.

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  1. ripowl

    ripowl UKBF Newcomer Free Member

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    I billed a Private Limited Company for services provided and received a cheque from the Company Secretary for the full amount. My bank returned the cheque as it had no signiture. I have since been advised by the Companies accountant the Company does not have the funds to meet my debt. The unsigned cheque was accompanied by a Compliment Slip (which had been signed) stating the amount being paid.The cheque was also from the personal account of the Company Secretary and not from a business account.
    I believe the signed compliment slip shows a clear intention to pay the debt and the fact the cheque was from a personal account makes the individual i.e the Company Secretary and not the Company liable in terms of honouring the cheque.
    The Company Secretary undoubtedly has the means to pay the debt and will still make a healthy profit on the services I provided.
    Any thoughts or advice on where I stand legally would be welcomed

    Many Thanks Ripowl
     
    Posted: Sep 27, 2006 By: ripowl Member since: Aug 6, 2006
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  2. bwglaw

    bwglaw UKBF Newcomer Free Member

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    It appears another contract is created under the bill of exchange i.e. cheque, and the bill of exchange is only valid when signed. If not signed, the presentation of the bill of exchange will only be prima facie evidence of the debt.

    The original contract still remains with the original debtor. It may be possible to make a claim against the Company Secretary who is acting on the behalf of the original debtor but the mere presentation of a bill of exchange may not be enough to make him/her personally liable for the original debt.

    You need to be pro-active to ensure that you do get your money in the event that the debtor goes into liquidation and you may not get anything.

    Jonathan
     
    Posted: Sep 27, 2006 By: bwglaw Member since: Apr 8, 2005
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