Raj owed $5000 to Monica.In payment of that debt, he gave her a cheque for that amount that was drawn on his account at the Bank of Regina.In fact, his account only held $3000 worth of credits.Which of the following statements is TRUE?

Question

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Raj has effectively asked the Bank for a loan which may or may not be granted. The cheque will bounce as there are not enough funds in Raj's account to cover the payment. The bank may or may not grant Raj an extension of credit to cover the shortfall, but if they do, it will be at their discretion and subject to any fees or penalties they may impose. None of the other options are true; the cheque being countermanded would mean it has been cancelled, which has not happened yet. The bank cannot sue Raj for breach of contract because they are not a party to the contract between Raj and Monica. The bank will not pay Monica more than what is in Raj's account without Raj's permission, and Raj cannot sue the bank for paying Monica the correct amount.

Raj Owed $5000 to Monica