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Onyango signed a cheque and crossed it “not negotiable.” He told Atieno, his secretary, to fill in a certain amount and to X?s name as payee....

      

Onyango signed a cheque and crossed it “not negotiable.” He told Atieno, his
secretary, to fill in a certain amount and to X‟s name as payee. Atieno filled in a
large amount made the cheque payble to Nairobi Harambee Secondary School and gave
it to her brother to take it to the school in order to pay the outstanding school fees. The
Nairobi Harambee secondary school cashed the cheque in good faith. Onyango wants to
know his rights, if any, against the school. Advice onyango.

  

Answers


Maurice
This problem is based on cheques crossed generally but with the words “not
negotiable”.

In this case it is apparent that Atieno had no title to the cheque and could not negotiate
it to Nairobi Harambee Secondary School. The school therefore acquired no title to it
or the amount.

The amount is therefore recoverable.

My advise to Onyango is to sue Nairobi Harambee Secondary School for the amount.

My advise is based on the decision in Wilson and Meeson V. Pickering whose facts were
substantially similar.
maurice.mutuku answered the question on May 2, 2018 at 13:05


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