Is an uncashed cheque a deposit? Discuss

[jjlandlord]

Found another article on payments of rent by cheque, which quote several legal precedents on the issue, including Home v Smith already mentioned:
http://www.fp-law.com/commercial-pro...by-cheque.html

It basically states the same as the LawGazette's articles.

Interestingly it also states that if sending a cheque by post the deemed date of payment is when the cheque is posted.

[westminster]

In cases such as this one can never be sure what a court will decide. Certainly courts are keen to discourage anything seen as a way of getting round statutory protection.

Indeed, this situation comes across as such, although I think it has happened out of ignorance of the law, not as a deliberate dodge. I don't think that this would affect a court's decision, however.

[jjlandlord]

I think Wesminster's original post confused us regarding the definition of a tenancy deposit, which is not in s.213(8).

The actual definition is in s.212(8):

“money” means money in the form of cash or otherwise;

"tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
(a) the performance of any obligations of the tenant, or
(b) the discharge of any liability of his,
arising under or in connection with the tenancy.

IMHO it may difficult to argue that a cheque is not "money intended to be held as security" since that's the whole point of taking the cheque and since once the landlord has the cheque there's nothing the tenant can do against the money ending on the landlord's bank account. Money is held 'otherwise'.