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9953
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?

Prudential Middle East Attorneys & Legal Consultants
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
15 Mar 2020, 08:39
Hi
You can write on the copy of the cheque receipt "security cheque" not to be deposited.
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