Response

Rent can be paid by cheque, electronic bank transfer or, in some cases, cash. Ask your landlord how they would like to receive payment. While post-dated cheques are convenient, it is illegal for the landlord to demand this form of payment in some provinces. The Supreme Court has ruled that stopping the payment of a post-dated cheque, issued to discharge debt or liability, is a criminal offence under the Negotiable Instruments Act. The post-dated check is the most common means of payment for a loan. It is a check that is written and issued by the debtor for a date in the future and may not be encashed or deposited until such time. Debtors use post-dated checks to avoid missing payments on their loans. PDC can become cheque only on the date that is present in the document. Prior to the said date, it is just a bill of exchange. Post dated cheque’s validity is only for 3 months from the date that appears on the document. Issuance of PDCs is either as security cheques for loans or as advance. Postdating a check may be considered illegal if the check writer’s account does not have the necessary funds to deposit the check, and if the writer’s intent was to defraud at the time of issuing the check.

Reference: Negotiable Instrument Act, 1881

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LAWAYZ-2023-114