Hector Had Planned a New Business Venture,and Thomson Was Interested

Hector had planned a new business venture,and Thomson was interested in participating in it.Thomson felt that it would take her four weeks to determine whether she could fully devote her time to the business.As the success of the venture depended on an immediate start,Hector was reluctant to include Thomson.To convince Hector of her sincerity,Thomson offered to provide him with a cheque for $5,000 that he could cash if she decided to back out of the project within four weeks.Hector agreed,and Thomson gave him the cheque fully completed and with the current date,marked: "to be cashed only if deal cancelled." As matters turned out,Thomson decided only a day later that she could not devote the time to participate in the venture.She told Hector that she was backing out,and attended at the bank and placed a stop payment on the cheque.The cheque was duly dishonoured when Hector tried to cash it,and he sued Thomson pursuant to the Bills of Exchange Act for the $5,000.His claim was also for a further $1,000 that he was forced to pay as a fee to a broker for finding him another investor on short notice.Discuss.