business accepting post dated checks for payment of services?

Question

better business practice is this illegal to do or not

Answer 1

Its legal. Its probably not a good business practice. Let me explain why.

The laws of most states define a "bad check" as a check which is given to another party ith the presumption that the check is immediately valid. In other words, when the issuer of the check hands over the check, the implied promise is that the check is valid. This is based on the date of the check. If the check is post-dated, and the person accepting the check accepts it as payment of goods, then it is not a "bounced check". In other words, the laws governing collection of an insufficient funds check often change radically.

In most jurisdictions, accepting a post-dated check means that you have entered into a contract to pay. If the check doesn't clear, for any reason, you may have recourse through the civil courts, but only for the amount of the check, and a few incidential fees. Nothing like the criminal penalties that apply to issuing a worthless check at the time of sale.

For more detailed information, you need to consult an attorney licensed in your state. For the name of an attorney, contact your local or state bar association for a referral.

Answer 2

As long as they don't try to cash it before the date on the check it is perfectly legal although not good for them as a business.

Answer 3

It's legal, however some business won't accept them if they are more than a certain number of days post dated. I do it.