1. Indicate the different treatment at law that is given to a cheque certified at the request of the holder as opposed to a cheque certified at the request of the drawer.
2. What is a “defect of title” defence? What type of holder of a promissory note or bill of exchange would this type of defence be effective against?
3. Outline the various personal defences available.\ Indicate the type of holder that they might be raised against.
4. 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.