What is the legal value of a draft which was never cashed? Will it be a liability on the party to whom it was given or will it be a liability on the party who gave it?
Checks remain effective with no expiration date, but may be refused for payment after six months from their issue date. If a check is not cashed, and if it was issued to satisfy an obligation or other liability, the underlying liability remains unsatisfied. The duration of that underlying liability is a matter affected by such things as state statutes of limitations.
If Sam owes you money and gives you a check to pay the debt, and you fail to cash the check, Sam's debt to you remains. That debt may go away due to the passage of time, however, even if you never cash the check.
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