1. X gave Y a post-dated cheque for $3,000 as payment for a well that Y...

 

Transcribed Image Text:

1. X gave Y a post-dated cheque for $3,000 as payment for a well that Y drilled on X's farm. The cheque fell due in 30 days' time. Y negotiated the cheque to Z for $2,800, a few days after it was given as payment for the well drilling. Before the end of the month, the well ran dry, and X stopped payment on the cheque. Advise Z of his rights as the person in possession of the cheque. 2. B purchased an automobile from C for $500. B gave C a cheque for $500 that C, a minor aged 16, endorsed to D as payment for D's motorcycle that C had purchased. D presented the cheque for payment, only to discover that B had insufficient funds in the bank for payment, and the cheque was dishonoured. Advise D of the law in this instance. 3. McMullan opened an account at a bank and received a box of personalized cheques bearing his name and address. Later, he closed the account. Several months after he closed the account, he wrote a cheque on the account and gave it to a friend as payment of a loan he had received from the friend. Discuss the issues raised in this case. 4. Duarant purchased a new automobile, giving a cash down payment and a promissory note for the balance. The automobile dealer assigned the note to a local finance company. The vehicle proved to be totally unreliable, and when the dealer was unwilling to take back the vehicle, Duarant stopped making payments on the promissory note. The finance company sued him for the balance owing. Discuss the issues that will be raised at trial. 1. X gave Y a post-dated cheque for $3,000 as payment for a well that Y drilled on X's farm. The cheque fell due in 30 days' time. Y negotiated the cheque to Z for $2,800, a few days after it was given as payment for the well drilling. Before the end of the month, the well ran dry, and X stopped payment on the cheque. Advise Z of his rights as the person in possession of the cheque. 2. B purchased an automobile from C for $500. B gave C a cheque for $500 that C, a minor aged 16, endorsed to D as payment for D's motorcycle that C had purchased. D presented the cheque for payment, only to discover that B had insufficient funds in the bank for payment, and the cheque was dishonoured. Advise D of the law in this instance. 3. McMullan opened an account at a bank and received a box of personalized cheques bearing his name and address. Later, he closed the account. Several months after he closed the account, he wrote a cheque on the account and gave it to a friend as payment of a loan he had received from the friend. Discuss the issues raised in this case. 4. Duarant purchased a new automobile, giving a cash down payment and a promissory note for the balance. The automobile dealer assigned the note to a local finance company. The vehicle proved to be totally unreliable, and when the dealer was unwilling to take back the vehicle, Duarant stopped making payments on the promissory note. The finance company sued him for the balance owing. Discuss the issues that will be raised at trial.