ABSTRACT
Payment by a cheque or other negotiable instrument is normally a conditional payment only. Thus, if the cheque is dishonoured, the seller is then ‘unpaid’ (s 38 of the Sale of Goods Act 1979).
Payment by credit or charge card, however, is an absolute and not a conditional payment. So, if the card issuing bank fails to pay the seller, the seller will have no claim against the buyer who paid by the card (Re Charge Card Services Ltd [1988]).
