A cheque not dated given as a guarantee of a loan of money is valid

Civil Law

Source: Supreme Court, Commercial Ch., 22nd Sept 2015, n°14-17.901 JurisData n° 2015-021015

As a guarantee of a loan of €500,000.00, the debtor gave the creditor a cheque for the same amount, not dated, from an account open in his own name.

The creditor dated the cheque and gave it for encashment.

The debtor having stopped payment on this cheque because of fraudulent use, the creditor issued a writ against both the bank and the debtor for the release of the cancellation.

The Court of Appeal of Versailles complied with this request.

The debtor complained that the judgement ordered the release of the cancellation of the cheque, mentioning in particular the fact that is considered null, as against public policy and therefore must have no effect, the agreement between the parties on the presentation of a cheque not dated, and the affixation of a false date, later on, in order to avoid the prescription, and allow its presentation for payment in spite of its expiration.

The Supreme Court dismissed the appeal.

The absence of date of the cheque at the time of its establishment results from an unambiguous agreement and presenting the cheque for encashment after filling in a date, the creditor only gave it the purpose of a guarantee cheque that both parties had conventionally used it for. From those findings and assessments, the Court of Appeal legally justified its decision.