It is probable that C cashed the cheque believing that A was "good" for the amount of the cheque, and that B was not "good" for it. Can C successfully sue B for the value of the cheque ? Having regard to the definition of a cheque (Bills of Exchange Act, 1882, Section 73), is B free from liability if he has complied with Section 58 (3) Bills of Exchange Act, 1882, which there is no reason to doubt he has done in this case? The cheque was cashed by the publican after banking hours. ANSWER: C can sue B for the amount, quite independently of the Bills of Exchange Act, and as a holder for value he can sue A on the cheque. Non-Trader's liability on Joint Account. QUESTION 1711.-A and B, who are not trading partners, have a joint account with their bankers, which is overdrawn. Are they severally liable in the absence of a joint and several undertaking to repay? ANSWER: Yes. Claim on Life Policy of Deceased Bankrupt. QUESTION 1712.-A B is overdrawn £180. A life policy for £100 is assigned to the bank as security. On 16th August, AB is made bankrupt. The surrender value of the policy at that date is £50. The bank claims dividend on the unsecured balance of £130. On 30th September A B dies before any dividend has been paid. The bank thus obtain 100 for the life policy. The point in dispute is this: Can the bank claim dividend on £130 or only on £80? Would the fact that the bank had decided before the declaration of dividend not to surrender the policy, but to take the risk of continuing it and paying the premiums affect the case? ANSWER: The bank can only claim on £80. Stamp on Policy-As to covering Bonus. QUESTION 1713.-A Life Policy for £1,000 is deposited with a bank as security, duly assigned to and stamped for £1,000. In the case of death, will the assignment carry the bonuses in addition to the amount of the policy, or should the assignment in the first instance be stamped to cover the bonuses? ANSWER: No; the assignment in the first instance should be stamped to cover the bonuses. |