Ralph recently had his house re-roofed by Red Roofing Co (RRC) .The company accepted Ralph's cheque as payment.Which of the following statements is most likely to be TRUE?
A) If Ralph's bank refuses to honour his cheque, RRC can sue Ralph for the price of the roof, even though it already received his cheque.
B) A cheque can be used for payment only if Ralph and RRC have accounts at the same bank.
C) If Ralph discovers that his new roof is defective, he should immediately instruct his bank to refuse RRC's request for payment, which will result in his cheque being overdrawn.
D) Ralph's cheque will be countermanded if the bank refuses to honour it because his account does not contain enough credit.
E) If the situation unfolds as expected, Ralph's bank will credit his account and RRC's bank will debit the roofer's account.
Correct Answer:
Verified
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