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Home >> Checks/Money Orders >> Checks You Received
Given Blank Check as Part of Contract
During a loan agreement, the other party gave me a blank check and signed it. Upon the end of our contract, I would fill in check with the remaining balance and cash it. Is this legal? The check was signed by the owner, but not filled out. If I fill in the full amount remaining on the loan and the owner does not agree, does that person have a case against me?
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 Yes, the issuance of a signed blank check, while risky, is legal. It implies the authority for the transferee of the check to complete it, and that authority is presumed in the law unless the individual claiming the completion of the check is unauthorized can prove so.
As for whether the issuer of the check could argue that you completed the check for the wrong amount, that would be a matter covered by your contract. The more detailed the contract is as to the amount you will be due at contract completion, the less the chances that the check issuer will have a valid dispute if you adhere to the contract amount and perform your side of the agreement in accordance with that contract.
Published on BankingQuestions.com 4/16/09
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