Question

On Monday, Deb Wright went to Moduck Travel to purchase airline tickets. Because she didn't have a credit card Wright had to pay cash. She told Moduck she did'nt have the money to cover the tickets in her account, but would have it in the next Wednesday, and asked Moduck to take a postdated check. Wright deliverd to Moducm a check that was not postdated but dated the previous day. Moduck neld the check until Wednesday, but it bounced, and Wright eas charged with issusing a bad check. Wright argued the instrument was not a check.

Did predicting the check destroy negotiability?

And if the two parties chose to take this matter into court, who would win the case in trial? Why?

Answer 1

post-dated cheque is a cheque issued by the  payer for a specified date in future. the legal formalities relating to a post dated cheque varies from country to country. for example , in UK and US post dated cheques are considered as negotiable instruments and hence can be drawn upone anytime whereas in India it is not payable till the date written on the cheque.

In the case given ,Deb issued a cheque which is dated on the previous date. so the cheque was not post dated cheque. in this case the cheque bounced .usually a cheque bounces when the payer/writer (Deb in this case) has insuffiecient funds in her account.

predicing the cheque didn't destroy the negotiability of the cheque. but ,lack of sufficient balance in the concerned account for honouring the cheque will casue the cheque to bounce. it will attract fees and banking restrictions.

if the matter is taken to the court Moduck will win the case as it is the reponsibility of Deb Wright to ensure that sufficient fund is avalilable in the account to honor the cheque on the date specified in the cheque .