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Can a manager's cheque ever bounce or be cancelled in the UAE?

Asked by Anonymous·Jun 10, 2026·1 answers
We're about to close a car sale and the buyer insists a manager's cheque is as good as cash. I'd always assumed the same, until someone mentioned they can be stopped or fail in rare cases. Should I wait for it to clear before handing over the car?

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 11, 2026
A manager's cheque is close to cash — it is drawn by the bank on itself, so the buyer's personal balance is not a risk — but as good as cash slightly overstates it. They can fail or be stopped in narrow situations: the cheque is reported lost or stolen, fraud or forgery is alleged, or a court orders payment frozen. The more practical danger in car sales is not a genuine manager's cheque bouncing; it is a forged one, which is a known scam. So protect yourself with verification rather than trust. Call the issuing bank's branch directly — using a number you look up yourself, not one the buyer hands you — and confirm the cheque number, amount and beneficiary are genuine and active. Better still, complete the handover at the bank: meet the buyer at the issuing branch, confirm the instrument there, and only then sign over the vehicle. If logistics allow, an immediate bank transfer cleared into your account before ownership transfer is the cleanest option of all. Keep the deal's paperwork together in one place. If anything about the buyer's urgency feels off, pausing costs you little — and a UAE-licensed lawyer can review the sale documents if real money is at stake.
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