LET A BUSINESS LAWYER DO YOUR CONTRACT REVIEW

LET A BUSINESS LAWYER DO YOUR CONTRACT REVIEW

Two days ago the MD of a company called Apex Chambers crying out bitterly that his wife who stood as Guarantor of a loan he took from a Microfinance Bank in 2023 had just been arrested by the Police and detained.

He said that he was made to issue 7 post-dated cheques in favour of the Bank as one of the conditions for being given the loan facility, and that he was unable to continue financing the loan repayment because his company had issues, and that the Police are making arrangements to charge her to court today for the criminal offence of issuance of dud cheque.

We asked him if a Lawyer reviewed the Loan Agreement and terms before he signed and he said no. As a borrower, note that it is not in your favour for you to be mandated to issue a post-dated cheque as a precondition for the approval of a loan.

A “dud cheque” is a cheque that cannot be honoured or cleared by the bank due to insufficient funds, closed account, frozen account or incorrect details.

If on the date written on the cheque you do not have enough money in the account you run the avoidable risk of facing criminal charges for issuing a dud cheque.

So it is advisable that you avoid issuing post-dated cheques for loans and that you get a Business Lawyer to review the details of every Agreement before you sign it.

If you need help with these and other business transactions, call, email or Whatsapp Apex Chambers, top Business Lawyers in Port Harcourt, Nigeria.

Apex Chambers, top Law Firm of Property/Real Estate and Business/Commercial/Corporate Lawyers in Port Harcourt, Rivers State, Nigeria

Phone: +2347030868694

Email: info@apexchambersglobal.com

Website: www.apexchambersglobal.com