Which of the Following Defences Is Available to the Drawer

question 16

Multiple Choice

Which of the following defences is available to the drawer of a cheque who is being sued by a holder in due course of a negotiable instrument?

• A) the drawer's signature was a forgery
• B) the cheque was obtained through breach of contract
• C) the payee was negligent
• D) the cheque was obtained through misrepresentation
• E) A and B

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Definitions:

Treasury Shares

Stocks that the original issuing company repurchased, subsequently decreasing the quantity of available shares in the market.

Percent Ownership

The percentage of an entity or asset owned by an investor or company, often determining the level of control or influence.

Excess Acquisition-Date Fair Value

Refers to the amount by which the fair value of the acquired net assets exceeds the purchase consideration in a business combination.