Margaret's husband Phil forged her signature on several cheques and cashed them at her bank.When Margaret found out she made Phil promise he would not do it again.One month later she discovered that Phil had recently cashed three more forged cheques.If Margaret sues the bank to recover the value of the first batch of forged cheques she will probably be:

Question

Quizplus · Accepted Answer

Margaret will likely be unsuccessful in her lawsuit against the bank for the first batch of forged cheques because she became aware of the forgeries and did not take action against the bank or Phil (such as reporting the forgeries to the bank or taking legal action). By not acting upon discovering the forgeries and instead making Phil promise not to do it again, she essentially accepted the situation, which may prevent her from later claiming the signatures were not genuine. This concept is known as estoppel, where a party is prevented from asserting a claim or right because of their own actions, inaction, or representations.

Margaret's Husband Phil Forged Her Signature on Several Cheques and Cashed