Sam Jasper agreed to sell 4000 litres of animal feed to Kate Hughes, who operates a wildlife

Question:

Sam Jasper agreed to sell 4000 litres of animal feed to Kate Hughes, who operates a wildlife park. After receiving the product, but before inspecting it, Kate told Sam that he could collect a cheque, as payment, from on top of the desk in her office. Before Sam did so, however, Kate inspected the feed and realized that it was contrary to the terms of the sale contract. Consequently, although she had completely written out a cheque in Sam’s favour, she did not leave it on top of her desk as promised. She instead put it into her desk drawer, with the intention of calling him and explaining her concerns. Before she could do so, however, Sam came by her office while she was out. When he realized that there was no cheque on top of her desk, he looked through the drawers, where he found the cheque that Kate had drawn. Sam immediately added his general endorsement to the back of that cheque and gave it to Benjamin Gigger as payment for another, unrelated contract. Kate soon discovered the facts and ordered the Bank of Alberta (the drawee) to refuse payment. Because Benjamin could not cash the cheque at the bank, he has sued both Sam and Kate for payment. Will he be successful against either party? What if the cheque that Sam took from the drawer was incomplete because Kate had not filled in the amount (although she had otherwise added all the necessary details, including her signature)? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0132164429

4th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

Question Posted: