Union Bank maintains two accounts for people called J.Banda; one is John Banda , the other James. This has , at times, created problems with occasionally debits and credits for one going to the other. John has been a good customer but the bank has had problems with James' account with some cheques returned for lack of funds.

A cheque for K1 500 was presented on James' account which would have overdrawn it by K1 200. On double-checking the account, it was discovered that the previous week, he had deposited in K2,000 cash which had been posted in error to John's account.

Discuss, in detail, the legal implications of the following: a. Returning unpaid James' cheque for K1 500.

b. John spending the K2 000 which was credited to his account.