Blank cheque explained

A blank cheque or blank check in the literal sense is a cheque that has no monetary value written in, but is already signed. In the figurative sense, it is used to describe a situation in which an agreement has been made that is open-ended or vague, and therefore subject to abuse, or in which a party is willing to consider any expense in the pursuance of their goals. The term carte blanche is used in a similar way.

Literal meaning

Cheque writers are advised to specify the amount of the cheque before signing it. A blank cheque can be extremely expensive for the drawer who writes the cheque, because whoever obtains the cheque could write in any amount of money, and might be able to cash it (if the current account or checking account contains sufficient funds, and depending on the laws in the specific country). Under American law, a blank cheque is an example of an "" as defined in the Uniform Commercial Code's Article 3, Section 115 (a).[1] Writing an amount in a blank cheque, without the authority of the signer, is an "alteration".[2] It is legally equivalent to changing the numbers on a completed (non-blank) cheque.

Metaphorical meaning

In finance

A "blank cheque company" refers to a company in development that has no specific business plan, such as a special-purpose acquisition company.[3]

In politics

In literature

Sir Arthur Conan Doyle used the term carte blanche in several of his Sherlock Holmes stories.

"Then, as to money?""You have carte blanche.""Absolutely?""I tell you that I would give one of the provinces of my kingdom to have that photograph."

"I understand that you give me carte blanche to act for you, provided only that I get back the gems, and that you place no limit on the sum I may draw.""I would give my fortune to have them back."

See also

Notes and References

  1. Web site: § 3-115. INCOMPLETE INSTRUMENT. Legal Information Institute. Cornell University Law School. 26 November 2016. en. 20 November 2012.
  2. Web site: § 3-407. ALTERATION.. Legal Information Institute. Cornell University Law School. 26 November 2016. en. 20 November 2012.
  3. Web site: Blank Check Company. www.sec.gov. U.S. Securities and Exchange Commission. 26 November 2016. 28 October 2014.
  4. Book: Claudia Durst Johnson. James H. Meredith. Understanding the Literature of World War I: A Student Casebook to Issues, Sources, and Historical Documents. 2004. Greenwood . 13. 9780313312007.
  5. News: Brown offers war 'blank cheque'. 26 November 2016. BBC News. 4 March 2003.