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- 5 Marks
Question
d) Kofi Mensa presented a cheque made out in his name to the BBB Bank. The drawer intended that the drawee withdraw an amount of GH¢2,000.00 which was written in words. The amount written in figures, however, showed GH¢200.00.
Required: Explain the chances of Kofi Mensa in any legal action against the BBB Bank. (5 marks)
Answer
Explain the chances of Kofi Mensa in any legal action against the BBB Bank. (5 marks)
Answer: Under the Bill of Exchange Act, where the sum of money payable is expressed in words and also in figures, and there is a discrepancy between the two, the sum denoted by words is the amount payable. For this reason, BBB Bank will be justified to pay GH¢2,000.00 to Kofi Mensa. (5 marks)
- Tags: Bills of Exchange Act, Cheque Discrepancy, Legal Action, Negotiable Instruments
- Level: Level 1
- Topic: Negotiable Instruments
- Series: MAY 2017
- Uploader: Dotse