p. 67520. Cheques and miscellaneous payment instruments
- D Fox, D FoxProfessor of Common Law, University of Edinburgh
- RJC Munday, RJC MundayReader Emeritus in Law, University of Cambridge
- B Soyer, B SoyerProfessor of Commercial and Maritime Law, Institute of International Shipping and Trade Law, Swansea University
- AM TettenbornAM TettenbornChair in Law, Swansea University
- and PG TurnerPG TurnerVisiting Senior Fellow of the Melbourne Law School
This chapter focuses on the use of cheques and similar instruments as a mode of payment in commercial transactions, and discusses the relation between them and bills of exchange (of which they are a specialised type). Cheques are intended as instruments which will immediately be paid, whereas bills of exchange are typically drawn payable at a future date and used as a credit instrument. Unlike bills of exchange, cheques are not, and are not intended to be, accepted by the bank on which they are drawn. This chapter first explains what a cheque is, and discusses the likely future of the institution, before discussing promissory notes, banker’s drafts, and travellers’ cheques.