3rd party cheques and liability

Our man in Havana · 08-07-2005 1:51pm #1

Have a question on 3rd party cheques.

Person (A) gives another person (B) a cheque. B goes off and gives it to a third party (C) who is a shop.

Cheque bounces for some reason. Who does the shop (C) have recourse against? B who paid gave him the cheque or A who wrote it in the first place?

Thanks
007

kluivert · 08-07-2005 2:11pm

Hey good post about the non resident directors.

The contract here is verbal or by action and the conctractual party is between C and B in which when the cheque hopped the wall B should pay up, after that it is up to B to chase A for the sums that where dishonoured.

Our man in Havana · 02-10-2005 11:21am

Up date on this, the person who alleges I owe him the money on the cheque came to the door last night demanding money. I told him there was nothing to discuss and promptly shut the door in his face.

Is he just clutching at straws here or does he have any case against me. I don't think so, but that do yee think?

thanks
007

Blackjack · 02-10-2005 11:28am

I take it you were person B in the original post.
I think the shopkeeper does have a case against you, and it's up to you to chase Person A for the payment.

Not certain, but logically that would be the case, Given that you've endorsed a cheque that's not been honoured.

Our man in Havana · 02-10-2005 11:36am

No I am person A, I gave the cheque to B who gave it to Shopkeeper C.

Blackjack · 05-10-2005 9:33pm

Then I reckon you only owe person B, or not as you cancelled the cheque.

Any particular reason you had for doing this?. If it was because you simply had no cash, than that's not really a good enough reason not to pay this chap. If it's because you had a beef with person B, then that's another matter.

Our man in Havana · 05-10-2005 10:59pm

A beef is putting it mildly. The person did not do the work and escaped with my stuff.

Maximilian · 07-10-2005 3:46pm

If you endorse a cheque in favour of a third party and the cheque subsequently bounces, you can be sued on foot of it (as can the person who originally wrote the cheque).

So yes, I think he does have a case against you.

Our man in Havana · 08-10-2005 1:26am

Not according to the barrister that gave me his opinion.

3rd party cheques and liability

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