Multiple choice

A bank has made payments. In which of the following scenarios will the bank not be protected and can be asked to reverse the debit entry?

  1. Where the drawer has put his signatures in small letters

  2. Where the drawer has put his signatures in capital letters

  3. Where the drawer’s signatures have been put by someone else so cleverly that these resemble the original signatures of the drawer

  4. Where the signatures of one of the drawers are as per record and of the other drawer not as per record but are otherwise genuine
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Where the drawer’s signatures have been put by someone else so cleverly that these resemble the original signatures of the drawer, this is not genuine and the bank can be asked to reverse the debit entry.

Keep practicing — related questions