Multiple choice

Mr. Ashok Kumar issues a power of attorney in favour of Mr. Amit Kumar on July 31, 2006 and dies on December 03, 2006. Your branch receives (on Dec 26, 2006) through clearing house, two cheques, signed by Mr. Amit Kumar, on June 12, 2006. Which cheque(s) will be paid?

  1. Both of the cheques will be paid, if there is balance in the account.

  2. Both of the cheques will be returned.

  3. Cheque signed by Mr. Ashok Kumar will be paid as the cheque was signed before death.

  4. Cheque signed by Mr. Amit Kumar will be paid as he is alive.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Both of the cheques will be returned because both the cheques are signed by Amit Kumar before the Power of Attorney was transferred. 

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