Cheque payment - blank cheques
9 months ago
We had given blank cheques to a co as gurantee in the course of trade as stockists of their products. The co was unable to fullfil the conditions of our agreement which resulted in our having stocks valued at Rs 16 lakhs and a due to the co of Rs 4 lakhs.Since there was no positive action from the co side inspite of severa lcommunications. We therefore issued a cheque stoppage to the bank and a copy of this was sent to co 3 months back. Can they now present the cheque and proceed legally
A.Dear Client,
When a business transaction is made through the execution of an agreement, until and unless the agreement is revoked or terminated in terms of the said agreement, the conditions of the said agreement remain enforceable. Further in the absence of specific conditions that empower you to terminate the contract for any deficiency in service that incurs financial loss or advice for stoppage of encashment of the Cheque to the Bank, your action may be treated as unfair trade practice. So you need to consult with an Advocate for further guidance and steps in the matter.
When a business transaction is made through the execution of an agreement, until and unless the agreement is revoked or terminated in terms of the said agreement, the conditions of the said agreement remain enforceable. Further in the absence of specific conditions that empower you to terminate the contract for any deficiency in service that incurs financial loss or advice for stoppage of encashment of the Cheque to the Bank, your action may be treated as unfair trade practice. So you need to consult with an Advocate for further guidance and steps in the matter.
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A.Dear client,
If you issued a cheque stoppage to the bank, They can't present the cheque and proceed legally.
If you issued a cheque stoppage to the bank, They can't present the cheque and proceed legally.
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