Look at the transaction
Review the agreement, payment schedule, default clauses, ledger, notices and communications to understand what the cheque secured.
Check liability at presentation
Determine whether the secured obligation had become due and what amount remained payable at the relevant time.
Avoid labels as a substitute for evidence
Simply calling a cheque a security cheque may not rebut the statutory presumptions. The defence should be supported by documents and a coherent factual account.
Part payment and amount
If payment was made before presentation, assess whether the cheque amount still represented the legally enforceable liability and whether statutory rules concerning the cheque amount are engaged.
Case-specific analysis
Judgments concerning security cheques depend on their facts and legal issue. Read the full decision rather than relying on a short quotation.
Preserve the contract, account statements, receipts, payment confirmations and correspondence.
PROFESSIONAL INFORMATION
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