Cheque Bounce Cases: Causes, Legal Implications, and Remedies
Cheque Bounce Cases: Causes, Legal Implications, and Remedies Cheque bounce cases, also known as dishonored cheques, are a common financial and legal issue that can arise in both personal and professional transactions. Understanding the causes, legal implications, and remedies is essential for individuals and businesses to handle such cases effectively. What is a Cheque Bounce? A cheque is said to have bounced when it is presented for payment, but the bank refuses to honor it. The refusal is typically accompanied by a memo stating the reason for the dishonor. Common Causes of Cheque Bounce Insufficient Funds: The most common reason for a cheque bounce is that the account holder does not have sufficient funds to cover the amount. Signature Mismatch: If the signature on the cheque does not match the…