LEGAL DEFINITION OF A CHEQUE

According to the Bills of Exchange Act 1882 in England, a cheque is defined as follows;

"An unconditional order in writing addressed by one person to another signed by the person giving it requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person or to bearer"

According to the section 73 of the Bills of Exchange Ordinance a cheque is defined as follows;

"A cheque is a bill of exchange drawn on a banker payable on demand"

Hence, a valid cheque should satisfy the following requirements;

A CHEQUE

(1) must be an unconditional order in writing,

(2) must be signed by the drawer,

(3) must be drawn on a banker,

(4) must order the banker to pay a certain sum of money on demand,

(5) must be drawn in favour of a specified person or to his order or in favour of the bearer.