Commonwealth Consolidated Acts

CHEQUES ACT 1986 - SECT 18

             (1)  Where the drawer of an instrument that is signed, but is otherwise wanting in a material particular necessary for the instrument to be, on its face, a complete cheque, delivers the instrument to another person in order that the instrument may be filled up as a complete cheque, any person in possession of the instrument shall be presumed, unless the contrary is proved, to have authority to fill up the instrument as a complete cheque in any way the person sees fit.

             (2)  Subject to subsection (4), an instrument to which subsection (1) applies is not enforceable against the drawer or a person who becomes an indorser of the instrument before the instrument is filled up as a complete cheque unless the instrument is filled up within a reasonable time and strictly in accordance with the authority given.

             (3)  Reasonable time, for the purposes of subsection (2), is a question of fact.

             (4)  An instrument of the kind referred to in subsection (1) that has been filled up as a complete cheque shall, as regards a holder in due course, be conclusively presumed:

                     (a)  to have been delivered to another person in order that the instrument might be filled up as a complete cheque; and

                     (b)  to have been filled up within a reasonable time and strictly in accordance with the authority given.