A bit confusing but what I mean by this is say, a guy writes a 1000 dollar check (made out to cash)to buy a quad. The guy receiving the check, instead of cashing it out, uses the original check to then go buy his own quad and so on.
In: Economics
Some businesses do not accept checks as you can cancel a check or lie about actually having the money but most all businesses accept cash.
The guy in your scenario is probably being cautious of not wasting everyone’s time and getting the payment in a more widely accepted form of payment.
Would the second seller trust that a stranger (the first buyer, who is a third party to the second sale) has enough money to cover the check? I think most people would require that the payment be made directly by the buyer and not by a third party.
Common sense. If Joe Jones is buying a quad from me and gives me a check made out to cash originally from Peggy Smith…no way am I taking that check. As far as I know it’ll bounce and I’m left with nothing
People trust bills because dept of Treasury stands behind those and says “we guarantee that you will be able to exchange this for goods worth $X”. People don’t trust this guy’s chèque the same way because they would need to take steps to validate that indeed they can exchange the chèque for goods worth $X. Yes
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