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Blank cheque

Metaphor for a vague agreement

Metaphor for a vague agreement

A blank cheque or blank check in the literal sense is a cheque that has no monetary value written in, but is already signed. In the figurative sense, it is used to describe a situation in which an agreement has been made that is open-ended or vague, and therefore subject to abuse, or in which a party is willing to consider any expense in the pursuance of their goals. The term carte blanche (borrowed from French; ) is used in a similar way.

Literal meaning

Cheque writers are advised to specify the amount of the cheque before signing it. A blank cheque can be extremely expensive for the drawer who writes the cheque, because whoever obtains the cheque could write in any amount of money, and might be able to cash it (if the current account or checking account contains sufficient funds, and depending on the laws in the specific country). Under American law, a blank cheque is an example of an "incomplete instrument" as defined in the Uniform Commercial Code's Article 3, Section 115 (a). Writing an amount in a blank cheque, without the authority of the signer, is an "alteration". It is legally equivalent to changing the numbers on a completed (non-blank) cheque.

Metaphorical meaning

In finance

A "blank cheque company" refers to a company in development that has no specific business plan, such as a special-purpose acquisition company.

In politics

  • On July 5, 1914, Germany gave Austria a "blank cheque" in handling its punishment of Serbia regarding the assassination of the heir to the Austrian throne. It led to the start of the First World War. German Chancellor Theobald von Bethmann Hollweg told the Austrian ambassador in Berlin that the Austrian Emperor had the support of the German Kaiser:
  • In March 2003, Gordon Brown, the British Chancellor of the Exchequer, "effectively offered a blank cheque for war against Iraq", and would thus spend what it takes' to tackle Iraq's weapons of mass destruction".

In literature

Sir Arthur Conan Doyle used the term carte blanche in several of his Sherlock Holmes stories.

  • "A Scandal in Bohemia":
"Then, as to money?" "You have carte blanche." "Absolutely?" "I tell you that I would give one of the provinces of my kingdom to have that photograph."
  • "The Adventure of the Beryl Coronet":
"I understand that you give me carte blanche to act for you, provided only that I get back the gems, and that you place no limit on the sum I may draw." "I would give my fortune to have them back."

Dame Agatha Christie uses the term carte blanche in her first published book where she introduced Hercule Poirot to the reading public.

  • "The Mysterious Affair at Styles" Chapter XII The Last Link:
"Madame, I have your permission to hold a little reunion in the salon? It is necessary for everyone to attend." Mary smiled sadly. "You know, Monsieur Poirot, that you have carte blanche in every way." "You are too amiable, madame."

References

References

  1. (20 November 2012). "§ 3-115. INCOMPLETE INSTRUMENT". Cornell University Law School.
  2. (20 November 2012). "§ 3-407. ALTERATION.". Cornell University Law School.
  3. (28 October 2014). "Blank Check Company". U.S. Securities and Exchange Commission.
  4. (2004). "Understanding the Literature of World War I: A Student Casebook to Issues, Sources, and Historical Documents". Greenwood.
  5. (2004). "Understanding the Literature of World War I: A Student Casebook to Issues, Sources, and Historical Documents". Greenwood.
  6. (4 March 2003). "Brown offers war 'blank cheque'". BBC News.
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