Paying a creditor with a post dated cheque which later bounces is normally not a criminal offence. Often, the issuer of the cheque is a company. When the cheque bounces, it is still difficult to sue the company directors.
Problem - company owes you money. The director issues a company cheque which is post-dated. What should you do?
Solution - get a promise from the director - he promises that the cheque will clear. In return, you promise not to sue the company at this time or you promise not to evict the company from its rental premises at this time (if you are the landlord).
This is called a collateral contract. You have promised something to the director and he has promised something in return, If the cheque later bounces, you have a good case in court to sue the director personally.
If you have legal queries, you are welcome to contact me - Terence Tan, Alpha Law
email - my gmail account is terencebctan - fill in the rest yourself.
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