The following precautions should therefore be taken when writing a cheque or a payment order:
- cross it 'not negotiable'
- if the customer's written account contract with the financial institution permits it, cross out the words 'or bearer', which ordinarily appear on printed cheques
- do not leave any space after the name of the payee or, after the amount in writing or, between the figures in the amount expressed in figures
- mark it account payee only
- whenever possible, write the purpose on the face of it (for example, electricity payment).
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.