CHAPTER 5: CHEQUE Flashcards
1
Q
A person who draws and issue the cheque
A
Drawer
2
Q
A banker who is authorised by the drawer to pay
A
Drawee
3
Q
A person who is named in the cheque
A
Payee
4
Q
undated cheque
A
• still valid but banker need not honour it
• holder of the cheque can fill in the true date of issue
• the date must be within reasonable time
• then the cheque can be honoured
5
Q
meaning of banker honouring cheque
A
the bank following the instructions on the cheque
