An Examination of the Effects of A Dishonoured Cheque

Unknown author (2010-04-12)


A Cheque being payment instruction and mandate by a customer to his banker must when properly drawn and the account is in sufficient fund be strictly complied with, a breach of might fix the banker with liability for not only negligence arising from contract but also libel. Be that as it may, this paper examines the consequences that follows from absence of sufficient care and skill especially failure to act in accordance with the written order of a customer as evidence in the issuance of cheques. The nature of the relationship between a bank and its customer as well as that of a cheque is extensive examined. And the principles governing award of damages for a wrongful dishonour of cheque by a banker is exhaustive highlighted. In the final part of the paper, far reaching suggestions particularly to the banker are made in order to reducing the incidences of the situation on the banker.