Commonwealth Consolidated Acts

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CHEQUES ACT 1986 - SECT 117

Conflict of laws

             (1)  Where a cheque drawn in one country is:

                     (a)  payable in another country; or

                     (b)  transferred by negotiation in another country;

the rights, duties and liabilities of the drawer, indorsers and holder shall be ascertained in accordance with this section.

             (2)  Subject to subsections (4), (5) and (6), the validity, as regards requisites in form, of a cheque shall be determined in accordance with the law of the place of issue.

             (3)  Without limiting the generality of subsection (2), the question whether a particular instrument is a cheque shall be determined in accordance with the law of the place of issue.

             (4)  A cheque issued outside Australia is not invalid by reason only that it is not stamped or properly stamped in accordance with the law of the place of issue or any other law.

             (5)  A cheque issued in Australia and payable outside Australia that is not stamped or properly stamped in accordance with the law of the place of issue or any other law:

                     (a)  is not invalid by reason only that it is not so stamped; and

                     (b)  may be received in evidence if the proper duty and penalty (if any) is paid.

             (6)  A cheque issued outside Australia that conforms, as regards requisites in form, to the law of Australia is, for the purpose of enforcing payment of the cheque, valid as between all persons who, in Australia, transfer the cheque by negotiation or hold or become indorsers of the cheque.

             (7)  The validity as regards requisites in form, of a supervening contract on a cheque shall be determined in accordance with the law of the place where the contract is made.

             (8)  Subject to subsection (10), the effects of a transfer of a cheque by negotiation shall be determined in accordance with the law of the place where the cheque is transferred by negotiation.

             (9)  The capacity of a person to incur liability on a contract on a cheque shall be determined in accordance with the law of the place where the contract is made.

           (10)  Subject to subsections (12), (13) and (14), a contract on a cheque shall be interpreted and have effect in accordance with the law of the place where the contract is to be performed.

           (11)  Without limiting the generality of subsection (10), where a cheque is dishonoured, the amount (if any) recoverable as damages in respect of a contract on the cheque shall be determined in accordance with the law of the place where the contract is to be performed.

           (12)  The necessity for presentment for payment, and the sufficiency of a presentment for payment, in relation to a cheque shall be determined in accordance with the law of the place where the cheque is payable.

           (13)  Where a cheque is dishonoured the necessity for, and the sufficiency of, a notice of dishonour, and any other act, in relation to the dishonour shall be determined in accordance with the law of the place where the cheque is payable.

           (14)  Where a cheque drawn in one country is payable in another country, the date on and after which the cheque may be paid by the drawee institution shall be determined in accordance with the law of the place where the cheque is payable.

           (15)  In this section:

"contract " , in relation to a cheque, includes:

                     (a)  a contract or warranty arising out of the drawing; and

                     (b)  a supervening contract in relation to the cheque.

"supervening contract " , in relation to a cheque, includes a contract or warranty arising out of:

                     (a)  an indorsement; or

                     (b)  a transfer by negotiation.



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