Questions & Answers
Is presenting a security cheque to force contract obligations an illegal act?
I sold my company to a purchaser and I had bank loans. We signed a contract with two main conditions:
- If he terminates me from Job, he will settle my loans immediately.
- By June 27, 2017, he will clear my loans or transfer in his name. If he fails to do so, he will give salaries for the delay period.
He had given me one security cheque. When he didn't meet any of the above conditions, I had to deposit the cheque. After the cheque bounced I made a police complaint.
According to his lawyer, I was not supposed to deposit the cheque because it was just a security cheque. Now they are planning to file a case against me.
Please advise what to do, I don't have a job for the whole past year.
Dear Sir,
I trust you are doing fine.
Pursuant to your query, please be informed that we require the contract copy before advising you any further. From the limited information available, we can suggest that as the opponent has given you a security cheque and failed to fulfil his obligations, you can rightfully submit the cheque.
The purpose of providing the security cheques is to submit them upon defaults made by the parties. Rest, we can advise you after reviewing the agreements.
Regards,
Aws M. Younis
045547635
Dear Questioner,
First of all, I would like to point out that this advice is based on your question which is very general and incomplete because we need to see the agreement because it might change based on how the agreement is drafted and signed.
The cheque is a separate settlement tool and even if it is related to the agreement, it should not be regarded as a crime to deposit such check from your side.
You should file a civil case against the company buyer for breaching such agreement between the parties.
