Ferdinand Bought a Boat from Isabelle

question 37

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

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