THE LAW RELATING TO CHEQUES.

South Canterbury Times, Issue 2551, 25 May 1881, Page 2

THE LAW RELATING TO CHEQUES.

In deciding an action brought to recover the amount of a dishonored cheque, Mr Ward, 11. M., recently made tiie following remarks on the law of chrques“ I find it laid down that where, a cheque is drawn it must be presented by the receiver, or some person for him, within what is technically termed a ‘ reasonable time.’ For

a very long time the Judges in our English Courts could not determine what was a reasonable time in which cheques, hills of exchange, and documents of a similar character were to be presented, but had ultimately arrived at this decision :--That when a cheque was drawn on a hank in a town in which, the receiver resided, it should ho presented on the following day. If the cheque was drawn on a bank away from the town, then a reasonable time for carriage must be allowdd, which would of course be determined according to circumstances. Although the cheque should be presented within that time the fact will not exonerate the drawer from payment, lie is liable for the cheque for six years. If anything should happen during that time, for instance if a hank should fail and the cheque had not boon presented within a*, reasonable time then the receiver would; be the loser ; for the reason that the money was in the bank at the time the cheque was drawn, and had it been sented would have been paid. A man may refuse to accept a cheque-in payment for services rendered, but having accepted it ho must lose no time in presenting it.”