Can an instrument of payment be offered that ensures complete
safety? The reality of the latter statement is an unlikely one. The
law, however, does attempt to provide security where a payment
transaction fails to do so. The nooks and crevices of such law must
be understood to avoid any misguided reliance's on it.
Post-dated cheques are considered to be an instrument of
security to guarantee future payments. They, however, are also used
as a tool of secured future payment. As can be understood, a
post-dated cheque promises payment of a specific amount at a future
date, and the party can only cash the said amount on the future
date. In Bahrain, there are criminal implications for issuing a
post-dated cheque from an account with insufficient funds. The
Criminal Court of Appeal in Bahrain has issued several judgments
clarifying the risks associated when doing so.
