Cheque legislation

The definition and use of cheques are covered by legislation, including The Bills of Exchange Act 1882, and also the Cheques Acts of 1957 and 1992. The Bills of Exchange Act 1882 defines a cheque as a written order from an account holder instructing their bank to pay a specified sum of money on demand to one or more named beneficiaries. However cheques are not – and never have been – legal tender. Even today, no creditor is legally obliged to accept a cheque in payment of a debt. A creditor is entitled to be paid in legal tender and may refuse to accept payment in any other form.