Blank check
Encyclopedia
A blank cheque in the literal sense, is a cheque
that has no numerical value
written in, but is already signed. In the figurative or metaphor
ic sense, it is used (especially in politics
) to describe a situation in which an agreement had 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.
, and would be able to cash it (to the extent that the chequeing account contains such funds, also depending on the laws in the specific country).
One might give a blank cheque to a trusted agent for the payment of a debt where the writer of the cheque does not know the amount required, and it is not convenient or possible for the writer to enter the amount when it becomes known. In many cases, it is possible to annotate a cheque with a notional limit with a statement such as "amount not to exceed $1000". In theory, the bank should refuse to process a cheque in excess of the stated amount.
The formal American legal term for a blank cheque is an – rather, a blank cheque is an example of an incomplete instrument, which more generally is any incomplete signed writing – and these are covered in the Uniform Commercial Code
's Article 3, Section 115. Filling in an amount into a blank cheque, without the authority of the signer, is an alteration (covered in Article 3, Section 407), and is legally equivalent to changing the numbers on a completed (non-blank) cheque, namely that the cheque writer is not liable for the cheque. However, the cheque writer has the burden of proving that the alteration was not authorized.
Businesses would have pads of counter cheques which did not even have the bank specified on them - the customer had to not only fill in the value of the cheque, the date, and their signature, but also had to designate the bank on which funds were to be drawn.
of the "blank cheque" is thus often used in politics. For example, in the United States
, the Gulf of Tonkin Resolution
has been called a blank cheque as it gave the President
, Lyndon B. Johnson
, the power to "take all necessary measures" to prevent "aggression" in Southeast Asia
. These powers were then used to escalate the Vietnam War
. Many in the United States Congress
protested, but were helpless to effect change, for the Tonkin resolution's terms were too subjective to enforce.
This term was also used to describe how the Kaiser
of Germany
(Kaiser Wilhelm II) told Austria-Hungary
officials that they could deal with Serbia
however they wanted after Serbian Nationalists assassinated the heir to the throne of Austria-Hungary, Archduke Franz Ferdinand. This immediately preceded World War I
.
An example of the second metaphorical usage can be seen in a BBC News
article, in which Gordon Brown
, the then Chancellor of the Exchequer
, offered a 'blank cheque', and would thus '"spend what it takes" to tackle Iraq's weapons of mass destruction.'
It may also be used in service fields. Customers may tell a company to treat the project as their own, which, in essence, is a carte blanche. (To the extent the service meets normal expectations.)
's The Three Musketeers
:
or in French:
Sir Arthur Conan Doyle used the term carte blanche in several of his Sherlock Holmes
stories.
, the term blank cheque company can refer to a company in development that has no specific business plan yet. For a fuller discussion of blank cheque companies, see Special purpose acquisition company
.
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
that has no numerical value
Value (mathematics)
In mathematics, value commonly refers to the 'output' of a function. In the most basic case, that of unary, single-valued functions, there is one input and one output .The function f of the example is real-valued, since each and every possible function value is real...
written in, but is already signed. In the figurative or metaphor
Metaphor
A metaphor is a literary figure of speech that uses an image, story or tangible thing to represent a less tangible thing or some intangible quality or idea; e.g., "Her eyes were glistening jewels." Metaphor may also be used for any rhetorical figures of speech that achieve their effects via...
ic sense, it is used (especially in politics
Politics
Politics is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs, including behavior within civil governments, but also applies to institutions, fields, and special interest groups such as the...
) to describe a situation in which an agreement had 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.
Literal meaning
Cheque users are normally advised to specify the amount of the cheque before signing it. If created accidentally, a blank cheque can be extremely dangerous for its owner, because whoever obtains the cheque could write in any amount of moneyMoney
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
, and would be able to cash it (to the extent that the chequeing account contains such funds, also depending on the laws in the specific country).
One might give a blank cheque to a trusted agent for the payment of a debt where the writer of the cheque does not know the amount required, and it is not convenient or possible for the writer to enter the amount when it becomes known. In many cases, it is possible to annotate a cheque with a notional limit with a statement such as "amount not to exceed $1000". In theory, the bank should refuse to process a cheque in excess of the stated amount.
The formal American legal term for a blank cheque is an – rather, a blank cheque is an example of an incomplete instrument, which more generally is any incomplete signed writing – and these are covered in the Uniform Commercial Code
Uniform Commercial Code
The Uniform Commercial Code , first published in 1952, is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.The goal of harmonizing state law is...
's Article 3, Section 115. Filling in an amount into a blank cheque, without the authority of the signer, is an alteration (covered in Article 3, Section 407), and is legally equivalent to changing the numbers on a completed (non-blank) cheque, namely that the cheque writer is not liable for the cheque. However, the cheque writer has the burden of proving that the alteration was not authorized.
Counter cheque
Blank cheque was also commonly used as a synonym for counter cheque. Before the Federal Reserve established regulations in 1967 requiring that cheques be MICR encoded in order to be handled by their clearing houses, it was fairly common for banks, especially in small towns, to issue cheque to customers which were not personalized other than the name of the bank.Businesses would have pads of counter cheques which did not even have the bank specified on them - the customer had to not only fill in the value of the cheque, the date, and their signature, but also had to designate the bank on which funds were to be drawn.
Metaphoric meaning
The metaphorMetaphor
A metaphor is a literary figure of speech that uses an image, story or tangible thing to represent a less tangible thing or some intangible quality or idea; e.g., "Her eyes were glistening jewels." Metaphor may also be used for any rhetorical figures of speech that achieve their effects via...
of the "blank cheque" is thus often used in politics. For example, in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the Gulf of Tonkin Resolution
Gulf of Tonkin Resolution
The Tonkin Gulf Resolution was a joint resolution which the United States Congress passed on August 10, 1964 in response to a sea battle between the North Vietnamese Navy's Torpedo Squadron 10135 and the destroyer on August 2 and an alleged second naval engagement between North Vietnamese boats...
has been called a blank cheque as it gave the President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
, Lyndon B. Johnson
Lyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...
, the power to "take all necessary measures" to prevent "aggression" in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
. These powers were then used to escalate the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
. Many in the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
protested, but were helpless to effect change, for the Tonkin resolution's terms were too subjective to enforce.
This term was also used to describe how the Kaiser
Kaiser
Kaiser is the German title meaning "Emperor", with Kaiserin being the female equivalent, "Empress". Like the Russian Czar it is directly derived from the Latin Emperors' title of Caesar, which in turn is derived from the personal name of a branch of the gens Julia, to which Gaius Julius Caesar,...
of Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
(Kaiser Wilhelm II) told Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...
officials that they could deal with Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
however they wanted after Serbian Nationalists assassinated the heir to the throne of Austria-Hungary, Archduke Franz Ferdinand. This immediately preceded World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
.
An example of the second metaphorical usage can be seen in a BBC News
BBC News
BBC News is the department of the British Broadcasting Corporation responsible for the gathering and broadcasting of news and current affairs. The department is the world's largest broadcast news organisation and generates about 120 hours of radio and television output each day, as well as online...
article, in which Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
, the then Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, offered a 'blank cheque', and would thus '"spend what it takes" to tackle Iraq's weapons of mass destruction.'
It may also be used in service fields. Customers may tell a company to treat the project as their own, which, in essence, is a carte blanche. (To the extent the service meets normal expectations.)
In literature
A renowned literary carte blanche (literally 'white card') was handed out by Cardinal Richelieu in Alexandre Dumas, pèreAlexandre Dumas, père
Alexandre Dumas, , born Dumas Davy de la Pailleterie was a French writer, best known for his historical novels of high adventure which have made him one of the most widely read French authors in the world...
's The Three Musketeers
The Three Musketeers
The Three Musketeers is a novel by Alexandre Dumas, first serialized in March–July 1844. Set in the 17th century, it recounts the adventures of a young man named d'Artagnan after he leaves home to travel to Paris, to join the Musketeers of the Guard...
:
or in French:
Sir Arthur Conan Doyle used the term carte blanche in several of his Sherlock Holmes
Sherlock Holmes
Sherlock Holmes is a fictional detective created by Scottish author and physician Sir Arthur Conan Doyle. The fantastic London-based "consulting detective", Holmes is famous for his astute logical reasoning, his ability to take almost any disguise, and his use of forensic science skills to solve...
stories.
- A Scandal in BohemiaA Scandal in Bohemia"A Scandal in Bohemia" was the first of Arthur Conan Doyle's 56 Sherlock Holmes short stories to be published in The Strand Magazine and the first Sherlock Holmes story illustrated by Sidney Paget....
- The Adventure of the Beryl CoronetThe Adventure of the Beryl Coronet"The Adventure of the Beryl Coronet", one of the 56 short Sherlock Holmes stories written by British author Sir Arthur Conan Doyle, is the eleventh of the twelve stories collected in The Adventures of Sherlock Holmes. The story was first published in Strand Magazine in May 1892.-Synopsis:A banker, Mr...
Blank cheque company
In economicsEconomics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, the term blank cheque company can refer to a company in development that has no specific business plan yet. For a fuller discussion of blank cheque companies, see Special purpose acquisition company
Special purpose acquisition company
A special-purpose acquisition company is a collective investment scheme that allows public stock market investors to invest in private equity type transactions, particularly leveraged buyouts...
.