Examine the circumstances in which a banker has no authority to honour a cheque drawn on him.

      

Examine the circumstances in which a banker has no authority to honour a cheque drawn
on him.

  

Answers


Maurice
The authority of a banker to pay a cheque drawn on him by a customer is determined in the
following ways:
(i) Countermand of payment: where a customer gives instruction to the banker not to
honour a cheque.

(ii) Notice of customers death.

(iii) Notice of bankruptcy petition against the customer.

(iv) Notice of drawer's insanity.

(v) A garnishee order.

(vi) Insufficient funds.

(vii) Holder's defective title: The holder has obtained a cheque through fraud or theft.

(viii) Closure of account.

(ix) If the cheque is irregular.
maurice.mutuku answered the question on May 2, 2018 at 13:02


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