Summary of the Problem: the drawer issued a cheque and delivered it to the beneficiary, the amount in numbers in the cheque was (2,000 US dollars) whereas the amount in words was (Twenty Thousand US dollars), the bank paid twenty thousand dollars to the beneficiary and the beneficiary received the amount.
The drawer filed a case against the bank and the beneficiary and the cause of action was (occurrence of error on the side of the two defendants) and requested the court to bind them to restore eighteen thousand US dollar to the drawer as the amount due to the beneficiary was the amount in numbers which is 2,000 US dollars only, but the drawer lost his\her case which had been dismissed by the court !!
Summary of the Solution: according to the applicable laws of most countries in the world , if there is a difference between the amount in numbers in the cheque and the amount in words , the amount in words shall be paid to the beneficiary , most laws in the world presume that the amount in words in the cheque is the correct one if it differs from the amount in numbers on ground that it is easy to forge the amount in numbers (for instance: by adding a zero thereto) but it is quite difficult to forge the amount in words written in the shape of a complete sentence consisting of many letters, therefore , the amount in words shall always prevail over the amount in numbers in case of difference between the two amounts in the same cheque.
In order to avoid facing such problem, the drawer must know the prevailing law which accepts the amount in words in the cheque and rejects the amount in numbers in case of difference between the two amounts as ignorance of law is no defense, and the drawer shall always ensure that the amount in words in the cheque is the correct amount due to the beneficiary, otherwise, the beneficiary will expose himself\herself to unwanted and undesirable legal prank!!
Advocate\Faisal Ali Addabi
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