The concept of cheque
my country’s Bills of Exchange Law defines cheque as: a cheque is a bill issued by the drawer, which unconditionally pays a certain amount to the payee or holder upon sight of the cheque.
The UK Bills of Exchange Act defines cheque as: a sight draft payable on a bank.
Characteristics of cheque
(1) The payment date of a cheque is limited to sight.
(2) The payee of a cheque is limited to a bank or other financial institution that handles cheque deposit business, and there must be a financial relationship between the drawer and the payee, that is, the drawer must have a deposit in the payee bank and sign a cheque agreement with the payee bank.
(3) The payment period of a cheque is relatively short. my country’s “Bills of Exchange Law” stipulates that the holder of a check shall present it for payment within 10 days from the date of issue; for checks used in different places, the deadline for presenting it for payment shall be separately stipulated by the People’s Bank of China; if the deadline for presenting it for payment is exceeded, the payee may refuse to pay; if the payee refuses to pay, the issuer shall still bear the liability for the bill to the holder. The “Geneva Uniform Bills of Exchange Law” stipulates: the presentation period for checks is generally 8 days for domestic checks; 20 days for checks issued and paid in different countries but in the same continent; 70 days for checks issued and paid in different countries and in different continents.