Vendor v. Drawer (Insufficient Funds Check as Security)
Synthèse Legislator
Généré par l'IAA vendor, having received a check that was later returned for insufficient funds, sued the drawer for payment, claiming the check was given as a security deposit or advance on payment for a future transaction, not as payment itself, which would extinguish the debt. The court rejected the appeal, reasoning that a check, even if post-dated, constitutes a means of payment; unless explicitly agreed otherwise, the delivery of a check provisionally extinguishes the debt, and the non-payment of the instrument merely allows the creditor to exercise the right to pursue the original debt, but the initial delivery itself is presumed to be a payment obligation, and here, the mere fact of giving the check, absent proof of a different agreement regarding its role, was considered the novation of the underlying obligation to a simple obligation to pay by check.
Regeste Legislator
Généré par l'IAVendor v. Drawer (Insufficient Funds Check as Security): The court rejected the appeal, reasoning that a check, even if post-dated, constitutes a means of payment; unless explicitly agreed otherwise, the delivery of a check provisionally extinguishes the debt, and the non-payment of the instrument merely allows the creditor to exercise the right to pursue the original debt, but the initial delivery itself is presumed to be a payment obligation, and here, the mere fact of giving the check, absent proof of a different agreement regarding its role, was considered the novation of the underlying obligation to a simple obligation to pay by check.