B obtains A's acceptance to a bill by fraud. B indorses it to C who takes it as a holder in due course. C endorses the bill to D who knows the fraud. Can D recover from A?
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Thursday, November 01, 2007
NI Act_Practicle Problems_20
A cheque is payable to M or order. It is stolen and the thief forges M's signature and presents it to the banker who makes the payment in due course. Can M recover the amount from the banker?
NI Act_Practicle Problems_19
H is the holder in due course of a bill of which A is the acceptor. 0, the drawer of the bill is fictitious. Can A escape from his liability to H?
NI Act_Practicle Problems_18
A draws a cheque in favour of B. A's clerk forges B's endorsement and negotiates the cheque to C, who takes it in good faith and for value. C receives payment on the cheque. Discuss the rights of A and C.
NI Act_Practicle Problems_17
State with reasons whether the following shall amount to material alteration and invalidate the instrument.
a. D, in possession of an inchoate instrument where the amount has not been written on the instrument, writes himself the amount.
b. K, in possession of an uncrossed cheque received from A, write “Payee’s A/C only” on the face of the instrument.
NI Act_Practicle Problems_16
A promissory note did not contain the rate of interest in the space provided for the purpose. The creditor puts in the rate. The debtor contends that it is a material alteration and, therefore, he is not liable to pay. Decide.
NI Act_Practicle Problems_15
L had two promissory notes of Rs.500 each issued by S Banking Corporation. He placed them in the pocket of his coat and having forgotten, he washed, dried and starched the coat. He remembered of the notes while he was ironing his coat. He searched for them in the pocket of his coat and could find them in spoiled condition. The identity of the notes was rested to a certain extent except its numbers. Can he recover the money from the bank.
NI Act_Practicle Problems_14
State with reasons whether there is any 'material alteration' in following cases and whether to invalidates the instrument.
a. D, in possession of an inchoate instrument where the amount has not been written on the instrument, writes himself the amount
b. K, in possession of an uncrossed cheque received from A writes 'Payee's Account Only' on the face of instrument.
NI Act_Practicle Problems_13
When is an alteration made in negotiable instrument called ‘Material Alteration’? State with reasons whether there is any ‘Material Alteration’ in the following cases:
(i) the holder of a bill of exchange alters the date of the instrument to accelerate or prepone the time of payment;
(ii) the drawer of a bill exchange forgets to write the words, ‘or order’ on the bill. Subsequently, the holder of the bill of exchange inserts these words on the bill.
NI Act_Practicle Problems_12
Do the following alterations of a negotiable instrument render the instrument void?
(a) The holder of a bill alters the date of the instrument to accelerate or postpone the time of payment.
(b) The drawer of a negotiable instrument draws a bill but forgets to write the words 'or order'. Subsequently, the holder of the instrument inserts these words.
(c) A bill payable three months after date is altered into a bill payable three months after sight.
(d) A bill was dated 1992 instead of 1993 and' subsequently the agent of the drawer corrected the mistake.A bill is accepted payable at the Union Bank, and the holder, without the consent of the acceptor, scores out the name of the Union Bank and inserts that of the Syndicate Bank.
Unsolved_Practical Problems_15
X who is going out of town delivers a horse to Y for proper care. Is it an example of Bailment. Justify your answer.