Postdating a check is it legal
When you give a post dated check to someone for a purchase, it is considered a debt as they have extended you credit. Post dating a check IS legal, but it does NOT prohibit the recipient from cashing it.Once you give a check to someone, it's legal tender - even if dated for the future.
Banks in Canada must abide by the law otherwise they can in very big trouble if they don't and realistically people can sue them as the LAW is clearly written out!
Very seldom have written a post dated check, but most of us have to from time to time-as I have a few times-and again, the banks around here will not "cash" them until the date of the check. They may be able to post a deposit of a post dated check, but the funds are not available until the date of the check. A company which I used to work for accepted a post-dated check from a customer.
The company accidentally deposited the check early. The accounts payable department tried to reach the customer but he would not return calls.
Anyway, they ended up taking him to court over the bounced check.
Turns out that the judge filed in favor of the defendant stating that our company basically should not have sent the check in for deposit and that the check was no better than a promisory IOU.
This amazes methe difference b/w America and Canada.