The financial encyclopedia uses cookies to improve your user experience. Find out more here!




Blank cheque


A cheque where no sum of money is stated. The holder can fill in the amount himself. Blank cheques are often used in letter transactions where the price of the goods to be purchased is not known. The buyer may send a blank cheque but but writes, e.g., 'Not to exceed £2' on it. The bank will usually respect this instruction.

Reference: The Penguin Business Dictionary, 3rd edt.