QUESTIONS

1.'The decision of the Court of Appeal in Williams v Roffey Bros & Nicholls (Contractors) Ltd has significantly eroded the rule in Stilk v Myrick. Further, the reasoning employed by the Court has devalued the requirement of consideration.' Discuss this statement. Do you agree with the decision of the Court in Williams? Provide reasons for your answer.

2.Describe five essentials of a valid bill of exchange.

3.Outline four requirements of a promissory note.

4.Define the following types of bills of exchange

Order bills.

Bearer bills.

5.Define the term qualifi4ed acceptance.

Highlight four forms of qualified acceptance.

6.Explain the term promissory note.

Explain the characteristics of negotiable instruments

7.Briefly explain three uses of a bill of exchange.

8. Discuss six rules governing presentment for payment of a bill of exchange.

9.Explain the duties of a customer to the banker.

Highlight the conditions that a person must satisfy in order to qualify as a holder in due course of a negotiable instrument.

Summarize the circumstances under which the authority of a banker to pay a cheque drawn on him by a customer is terminated.

10.Explain the difference between a cheque and a bill of exchange.