Commonwealth Consolidated Acts

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CHEQUES ACT 1986 - SECT 18

Inchoate instruments

  (1)   Where the drawer of an instrument that is signed, but is otherwise wanting in a material particular necessary for the instrument to be, on its face, a complete cheque, delivers the instrument to another person in order that the instrument may be filled up as a complete cheque, any person in possession of the instrument shall be presumed, unless the contrary is proved, to have authority to fill up the instrument as a complete cheque in any way the person sees fit.

  (2)   Subject to subsection   ( 4), an instrument to which subsection   ( 1) applies is not enforceable against the drawer or a person who becomes an indorser of the instrument before the instrument is filled up as a complete cheque unless the instrument is filled up within a reasonable time and strictly in accordance with the authority given.

  (3)   Reasonable time, for the purposes of subsection   ( 2), is a question of fact.

  (4)   An instrument of the kind referred to in subsection   ( 1) that has been filled up as a complete cheque shall, as regards a holder in due course, be conclusively presumed:

  (a)   to have been delivered to another person in order that the instrument might be filled up as a complete cheque; and

  (b)   to have been filled up within a reasonable time and strictly in accordance with the authority given.



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