Patrick Bought a Widget from Ishani

question 51

Multiple Choice

Patrick bought a widget from Ishani. The purchase price was $25 000. He paid by giving her a cheque for that amount that was drawn on his account at the Bank of Fundy. The cheque was made payable to Ishani. By coincidence, Ishani owes $25 000 to XYZ Inc. Which of the following statements is TRUE?

• A) If Ishani negotiated the cheque to XYZ Inc, that company could receive payment from the Bank of Fundy only if it first provided consideration to Patrick.
• B) Ishani can discharge her debt to XYZ Inc by simply delivering the cheque to the company.
• C) If Ishani negotiated the cheque to XYZ Inc, that company would be entitled to turn the cheque into a bearer instrument.
• D) If Ishani wanted to negotiate the cheque to XYZ Inc, she would have to first have the cheque certified by the Bank of Fundy.
• E) If Ishani negotiated the cheque to XYZ Inc, that company could not ask the Bank of Fundy to certify the cheque.

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