wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Banker
In which of the following cases, the banker MUST refuse to honour the cheque?

A
When the banker receives notice of customer's insanity.
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
When the cheque has been allowed to become stale.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
When the cheque is ambiguous or otherwise materially altered.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
When the banker has no sufficient funds of the drawer with him.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B When the banker receives notice of customer's insanity.
Following are the circumstances when a banker refuse payment of Cheque:
  • When the customer has countermanded payment.
  • When the banker has received a garnishee order.
  • When the customer has died.
  • When the customer has become insolvent or insane.
  • Where the banker has received a notice of assignment.
  • When the customer has lost the instrument
  • When the banker has come to know of any defect in the title.
  • Where the instrument has been materially altered.
  • When the account is closed

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
The Monetary System
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon