Post dating cheques illegal uk

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The Criminal Court of Appeal in Bahrain has issued several judgments clarifying the risks associated when doing so.Due to both the social and legal implications of the ‘bouncing’ of a post-dated cheque, beneficiaries find it favorable to rely on this type of payment transaction.As such although a beneficiary cannot be ensured complete safety it is fair to say that they are guaranteed sufficient safety.and Criminal Appeal Number 9 of 2006, in session dated 25 December 2006 both make clear that the law does not automatically repeal liability if the issuer of the cheque pays the promised funds to the beneficiary after the claim has been raised.Post-dated cheques are considered to be an instrument of security to guarantee future payments.They, however, are also used as a tool of secured future payment.

Deduction of the above follows that the law offers a wider scope of protection to a beneficiary of a post-dated cheque than it does for the issuer of one.What can be construed from the above judgments is the reach of the Bahraini law and its intent to implicate those who issue post-dated cheques with cash consideration.Although payment transactions are tricky, the ability to prove bad faith and ill-intention require the mere existence of an account with insufficient funds and the rest of the dominoes follow.As can be understood, a post-dated cheque promises payment of a specific amount at a future date, and the party can only cash the said amount on the future date.In Bahrain, there are criminal implications for issuing a post-dated cheque from an account with insufficient funds.

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