HopefullyInLawSchool
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Simple English definitions for legal terms
cheque
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A quick definition of cheque:
A cheque is a piece of paper that you can use to pay for things. It's like a promise to give someone money. When you write a cheque, you're telling your bank to give the person or company you're paying the amount of money you wrote on the cheque. There are different types of cheques, like personal cheques that you write from your own bank account, and cashier's cheques that the bank writes for you. If you write a cheque and there isn't enough money in your bank account, it's called a bad cheque and the person you wrote it to won't get paid.
A more thorough explanation:
A cheque is a written order to a bank to pay a certain amount of money to the person or organization named on the cheque. It is a type of financial instrument that is used to transfer money from one person or organization to another.
- Bad check: A check that is not honored because the account either contains insufficient funds or does not exist.
- Canceled check: A check bearing a notation that it has been paid by the bank on which it was drawn.
- Cashier's check: A check drawn by a bank on itself, payable to another person, and evidencing the payee's authorization to receive from the bank the amount of money represented by the check.
- Personal check: A check drawn on a person's own account.
- Traveler's check: A cashier's check that must be signed by the purchaser at the time of purchase and countersigned when cashed.
These examples illustrate the different types of cheques that exist and how they are used. For instance, a bad check is a cheque that bounces because there is not enough money in the account to cover it. A canceled check is a cheque that has already been paid by the bank. A cashier's check is a cheque that is drawn by a bank on itself and is used to transfer large sums of money. A personal check is a cheque that is drawn on a person's own account and is used for everyday transactions. A traveler's check is a cheque that is used by people who are traveling and need a safe and convenient way to carry money.