PRESENTATION AND ENCASHMENT OF CHEQUE HELD TO AMOUNT TO ACCORD

Bracken v Billinghurst [2003] EWHC 1333 (TCC); [2003] All ER (D) 488 (July)

In Bracken v Billinghurst [2003] EWHC 1333 (TCC); [2003] All ER (D) 488 (July) Judge David Wilcox held that the claimants had agreed to compromise their claim against the defendant when they presented and cashed the defendant’s cheque which had been sent in ‘full and final settlement’ of all issues between the parties. While cashing a cheque is not conclusive evidence that the terms proposed by the party sending the cheque have been accepted, it is strong evidence of assent by the creditor. This being the case, a creditor who is minded to cash a cheque but does not wish to accept the terms on which the cheque has been sent by the debtor, must make it clear to the debtor that he is not assenting to the terms proposed by the debtor before he cashes the cheque.