BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following does not constitute ‘payment in due course’?
|
|
Payment of a post-dated cheque
|
|
|
Payment of a crossed cheque across the counter
|
|
|
Payment of a cheques the payment of which has been countermanded
|
|
|
All of the above
|
Explanation:
Detailed explanation-1: -10. “Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.
Detailed explanation-2: -A payment before maturity is not a payment in due course so as to discharge the instrument.
Detailed explanation-3: -For example, a banker makes the payment of a postdated cheque. In this case, payment made by the banker is not in accordance with the apparent tenor of the instrument (i.e. payment made before the date apparent on the instrument).
There is 1 question to complete.