Case 1: X and Y are two individuals. X banks with ANZ Centre point. Y banks with Bred Bank Suva. X agrees to buy a tablet from Y. The price is $1200 and this is a cash sale. X asks Y if he will accept a personal cheque as payment. Y says yes. Y deposits the cheque with his banker. The cheque is duly honored. Answer the following questions based on the case study above: 1. In agreeing to take the cheque as payment, Y was assuming the cheque would be honored. What legal reason (if any) has Y thinking that the cheque will be honored? Fully explain your answer with reference to sections from Fiji Bills of Exchange Act (1978). 2. Suppose the cheque was dishonored and this occurred because ANZ mistakenly thought there was a stop payment order. Following the dishonor Bred Bank returns the dishonored cheque to X. TRIMESTER 3, 2018 BNK 602 Page 2 With reference to sections from Fiji Bills of Exchange Act (1978), what legal options (if any) now exist for each party, namely X and Y in the above case? {Ensure you explain the legal foundation for any option(s) that now may exists