Magda purchased some new clothes at a clothing store and gave the salesclerk a cheque for the price of the goods as payment. The cheque is only conditional payment and remains so until the cheque is honoured by Magda's bank.

Question

Quizplus · Accepted Answer

A cheque acts as a conditional payment because the transaction is not considered complete until the cheque is successfully cleared and honored by the bank. If the bank refuses to honor the cheque (e.g., due to insufficient funds in the account), the payment is not completed.

Magda Purchased Some New Clothes at a Clothing Store and Gave