Multiple choice

A power of attorney is given on Jan 1, 2016 by X to Y. Y signed 3 cheques dated as Dec 25, 2015, Jan 12, 2016 and Jan 31, 2016. On Jan 17, 2006, his authority is cancelled by X. Cheques are presented for payment on Jan 31, 2006.

  1. Cheque dated Dec 25 and Jan 12 shall be paid.

  2. Cheque dated Jan 12 and Jan 31 shall be paid.

  3. Cheque dated Dec 25 and Jan 12 shall be returned.

  4. All the cheques would be paid.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Only the cheques which are signed after the power of attorney has been transferred will be acceptable.

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