Ferdinand Bought a Boat from Isabelle

question 48

Multiple Choice

Ferdinand bought a boat from Isabelle. The price was $100 000. She required payment to be made by way of a cheque. Which of the following statements is TRUE?

• A) By writing a cheque, Ferdinand will create an order that requires the drawee to credit his bank account.
• B) Isabelle will not be able to cash Ferdinand's cheque unless she has a bank account.
• C) If Ferdinand creates a valid cheque, his bank owes him an obligation to honour that negotiable instrument.
• D) Ferdinand can create a cheque by ordering his sister, Esmeralda, to pay $100 000 to Isabelle.
• E) As soon as Ferdinand creates a valid cheque, Isabelle will acquire rights against the drawee.

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