Solved

Ferdinand Bought a Boat from Isabelle

Question 8

Multiple Choice

Ferdinand bought a boat from Isabelle.The price was $100 000.She required payment to be made by way of a cheque.Which of the following statements is TRUE?


A) Ferdinand can create a cheque by ordering his sister, Esmeralda, to pay $100 000 to Isabelle.
B) As soon as Ferdinand creates a valid cheque, Isabelle will acquire rights against the drawee.
C) By writing a cheque, Ferdinand will create an order that requires the drawee to credit his bank account.
D) Isabelle will not be able to cash Ferdinand's cheque unless she has a bank account.
E) If Ferdinand creates a valid cheque, his bank owes him an obligation to honour that negotiable instrument.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents