The legalities of stopping a cheque
Discussion
Fictitious scenario-
Person A has person B do some work for him
Person B carries out the work and presents the bill
Person A pays the bill by cheque
Person A then discovers that there is a problem with the work, and promptly stops the cheque.
Is this illegal? Is there anything person B can do about it?
Person A has person B do some work for him
Person B carries out the work and presents the bill
Person A pays the bill by cheque
Person A then discovers that there is a problem with the work, and promptly stops the cheque.
Is this illegal? Is there anything person B can do about it?
You have attempted to exercise your right of set-off. THis was the wrong way to go about it I am afraid.
Person B can sue you on the basis of the check and get immediate judgment (if his lawyer or he knows the correct way to proceed which quite honestly I doubt) because a cheque is a promise to pay.
What you should do (I know this is a pain etc.. and stupid, but it's the law) is to pay the amount and then seek to recover any other fees for repair etc. from Person B. However, right now you ought to contact person B and tell them you have found errors and you are withholding payment until those errors have been corrected to your satisfaction. (Hindsight is a wonderful thing).
Person B can sue you on the basis of the check and get immediate judgment (if his lawyer or he knows the correct way to proceed which quite honestly I doubt) because a cheque is a promise to pay.
What you should do (I know this is a pain etc.. and stupid, but it's the law) is to pay the amount and then seek to recover any other fees for repair etc. from Person B. However, right now you ought to contact person B and tell them you have found errors and you are withholding payment until those errors have been corrected to your satisfaction. (Hindsight is a wonderful thing).
Off topic, and this doesnt help your situation OP, but:
Telling a bank a cheque is lost (as opposed to asking them to cancel it) usually means you do not pay the cancellation fee. Handy for those very rare instances when one needs to cancel a cheque.
Telling a bank a cheque is lost (as opposed to asking them to cancel it) usually means you do not pay the cancellation fee. Handy for those very rare instances when one needs to cancel a cheque.
Edited by Mobsta on Thursday 9th April 20:20
Mobsta said:
singlecoil said:
This thread moving thing gets a bit tedious, sometimes, especially as the topic has nothing to do with anbody's home, property or finance.
Cheques are sent to people, people live in homes, which require finance. If the thread had been about working Monks...
Good old PH.......
singlecoil said:
Thanks for the info, J&J, especially as I am person B in this particular situation (and the problem is largely fictitious).
Largely ficticious? Common as muck I reckon!! I often have builders and the like working at my place and get asked this question by almost all of them...... Some people seem to think if they withhold a cheque a builder will give up and they will get their work done for free (could just be the rich old folk around here in Suffolk), and I don't like that sort of behaviour.Edited by singlecoil on Thursday 9th April 19:50
I can give you the Civil Procedure Rules if you wish so that in the event that this happens to you (by some co-incidence in future), you can advise them that as they have paid by cheque they have guaranteed to pay you and you can apply for summary judgment (i.e. the court simply issue an order demanding that the writer of the cheque honours it or they get a CCJ)...
Or if you search google for Summary Judgment or CPR Cheque Rule etc..
But we don't need to tell the paying party how they should act rather than serve a cheque.....
Helicopter123 said:
I’m amazed that the humble cheque has survived as long as it has.
Cheques will probably get a second lease of life when all banks let you deposit by taking it a photo and submitting it electronically. No more writing a cheque out 3 or 4 days before pay day either, cleared in 24 hours in future!
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