Question
Outline four circumstances under which a cheque may be dishonored.
Answer
- If its stale
- If the drawers account has insufficient funds
- If there is disparity between the amount in figures and words
- If its postdated
- If its defaced
- If there are unsigned alterations on the cheque
- If the drawer has lost contractual capacity e.g. insane, bankrupt
- If the drawer has instructed the bank not to honour the cheque
- If there is a difference in specimen signature and the signature on the cheque
- If the drawer is dead and the bank is notified
- If payee does not have a bank account in case the cheque is crossed
- If the drawers account has insufficient funds
- If there is disparity between the amount in figures and words
- If its postdated
- If its defaced
- If there are unsigned alterations on the cheque
- If the drawer has lost contractual capacity e.g. insane, bankrupt
- If the drawer has instructed the bank not to honour the cheque
- If there is a difference in specimen signature and the signature on the cheque
- If the drawer is dead and the bank is notified
- If payee does not have a bank account in case the cheque is crossed
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