Multiple choice

Bank B is maintaining account of a sports club which is operated by its Secretary and President jointly. The bank receives a notice (on February 10, 2016) of the death of the President on January 31, 2016. Two cheques of Rs. 5000 each dated January 12, 2016 and February 2, 2016 are presented for payment on February 24, 2016. The bank shall

  1. pass both the cheques as these are signed by them in the capacity of an agent

  2. return both the cheques as the death of one of the drawers has taken place

  3. pass the 1st cheque and return the 2nd cheque

  4. pass the 2nd cheque and return the 1st cheque
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The bank shall pass the 1st cheque and return the 2nd cheque as the first cheque was dated before the death of the President (January 31, 2016). However, the other cheque was dated after the death of the President, so it will not be passed.

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