The question (15 marks)
Explain the object of crossing a cheque and the protection which the Act gives to the paying banker and to the collecting banker. (15 marks)
MU Module 4, head 4.1; pack chapters on negotiation, endorsement and crossing, and on the banker-customer relationship.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 4 · Negotiable Instruments and the Debt Recovery Tribunals of Law of Banking and Negotiable Instruments.
Authorities you will need
- Negotiable Instruments Act 1881, ss. 10, 85, 85A, 89, 123 to 131A
- Canara Bank v. Canara Sales Corporation
- London Joint Stock Bank Ltd. v. Macmillan
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.