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Precautions for giving a security cheque against provided services

We are asked to give an undated security cheque in lieu of the payment done for provided services, how to write this cheque?

Can we mention "Security Cheque" on the face of the cheque?

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Maryam Hayyaz & Wejdan Bushahab Advocates
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14 Mar 2020, 05:34

You can do so on the backside of the cheque.

If need be, kindly contact us by phone for a detailed discussion or write to us at our email for further assistance.

Prudential Middle East Attorneys & Legal Consultants
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15 Mar 2020, 06:20

The issuance of a cheque carries the same legal implications as per the UAE laws, even if issued for security purposes only.

So in your specific scenario, you may get signed a separate agreement with the service provider to elaborate the real intention of the parties.

This is to legally protect you in future by binding the other party to honour the specific terms mentioned therein.

Bin Eid Advocates & Legal Consultants
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15 Mar 2020, 08:39

Hi

You can write on the copy of the cheque receipt "security cheque" not to be deposited.

Amal Hassan Karam Law Firm
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15 Mar 2020, 16:54

Of course no; as per the cheque rule and if the period comes they can give it to the bank.

The right way is to write a legal contract with a lawyer.

For more information, contact me on the phone.

Lawyer Amal Karam

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