Check (or cheque)

Check (or cheque) – In Banking Law, this legal term refers to a form of bill of exchange where the order to pay is given to a bank which is holding the payor’s money. Usually the holder or the beneficiary of cheque presents it to the bank, which has to pay to them on behalf of the issuer (who keeps deposit money within the bank), the stipulated amount of money on the front of the cheque. Due to its nature, the check is a type of negotiable instrument. It differs from the draft, because the draft may be filled towards anybody, while the check is filled only to a bank.

There are various types of checks, depending of their usage – personal check, blank check, travelers check, etc.

In most jurisdictions a payment made via cheque is accepted in court to be a valid proof of payment made towards the creditor.

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