Legal Definitions - chit

A "chit" refers to a small, informal written note or voucher. Most commonly, it is a signed document that serves as a record of a transaction, acknowledging money received or owed, or goods and services provided.

• Example 1: Restaurant or Bar Tab

  Imagine a patron at a hotel bar who orders an additional drink after closing their main bill. The bartender presents a small slip of paper for the patron to sign, confirming that the cost of the drink should be added to their outstanding hotel room account.

  Explanation: This signed slip is considered a "chit" because it acts as an informal voucher, documenting the drink received and acknowledging the patron's agreement to have the cost added to their existing debt with the hotel.

• Example 2: Petty Cash Disbursement

  An office manager needs to purchase a small, urgent item for the office, like a specific type of battery. They take a small amount of cash from the petty cash fund and, following company procedure, fill out and sign a small form detailing the expense and the amount taken.

  Explanation: This signed form functions as a "chit" as it is a written record acknowledging the receipt of funds and the specific purpose for which they were used, serving as an informal accounting document for the petty cash drawer.

• Example 3: Service Claim Ticket

  When a customer drops off a garment for dry cleaning, the attendant provides a small, numbered ticket with a brief description of the item and the expected pick-up date.

  Explanation: This ticket serves as a "chit" because it is a small slip of paper with writing that acts as a claim check and an informal record of the item left for service, establishing the customer's right to retrieve their garment later.