Commentary

32 Conditional payment orders

BILLS OF EXCHANGE vol 4(1)
| Commentary

32 Conditional payment orders

| Commentary

32 Conditional payment orders1

A cheque is an unconditional order for payment. It follows that a form which in all other respects appears to be a cheque cannot be such if the payee is required to fulfil some requirement before the drawer’s bank is authorised to pay it. It should be noted that an order for payment is conditional only if the paying banker is bound by the requirement and not if it is imposed only on the payee2. Language indicating that the instrument should be paid only when an accompanying receipt is signed may be taken

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