Legal Question in Business Law in California

Well, that depends on the circumstances...if the question is 'can they force you to pay via post dated checks" the answer would be 'no'...if the question is 'can they as part of a settlement or financing scheme' request that you pay with post dated checks, the answer is yes, since they can usually set the terms of the transaction payment protocols....so, we would need more information to accurately answer your question.

By Grace...

Shawn Jackson ESQ. (707) 584-4529

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I think you have stated your question incompletely. What you are asking is probably something like "Can a business oblige me to give them postdated checks now for payments that will become due in the future?"

The answer is that there is nothing "illegal" about such a requirement being imposed as part of a business deal. Generally speaking, a seller can make whatever demands it feels it can get away with to make sure it gets paid on time. Of course, the seller can't "force" the buyer to pay with postdated checks. The buyer always has the option to say, "No, I'm not giving you any postdated checks!" and walk away.

Giving postdated checks is a time-honored way to make getting paid on time a little more certain. Postdated check "security" for future sums due is somewhat unusual in ordinary commercial transactions, e.g., at a store or a car dealership, but is somewhat more common in deals between individuals. I once borrowed $10,000 from a friend and gave ten postdated checks, one dated the first of each future month, as repayment with interest.

So, it's legal, in the sense that there is no law against it. Commercially, it's a bit unusual, but not unheard of. In so-called "private" transactions, it's more common. If it offends you to be asked for postdated checks, tell the other party "No" and take your business elsewhere.