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CHEQUE, where a customer draws a cheque on his banker, s.36(3)-A cheque is…
CHEQUE
TYPES OF CROSSING
SPECIAL 
S.76(2) : a crossing is special when the name of the banker is written between the parallel transverse lines or it is written across the face of the cheque without the lines.
EFFECTS:
- It can be only be cashed using an account
- It can avoid unauthorized persons to get payment across the bank counter.
- The paying banker can only pay the amount to a collecting banker named in the crossing
NOT NEGOTIABLE
S.81 : if the person who holds the cheque is a thief and transfers the cheque to A who accepts the cheque honestly and for the value, A cannot obtain a better title than the thief, the transferor of the cheque, has.
The cheque will loses the full character of negotiability but remain transferable (when the word "not negotiable" is written between the crossings).
- Case Wilson and Meeson v Pickering [1946] KB 422
GENERAL
EFFECTS:
- It can avoid unauthorized persons to get payment across the bank counter.
- It can be only be cashed using an account
- The paying banker can only pay the amount to a collecting banker
GENERAL CROSSING METHODS:
ACCOUNT PAYEE
S.81A : the word "account payee" or "a/c payee" on a cheque make it not transferable but only valid as between parties to the cheque.
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- Case House Property Co. of London v London County & Westminster Bank [1915]
- Case Yap Moi v Hong Leong Bank Bhd [2002] 3 CLJ 562
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CHARACTERISTICS
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Additional Characteristics
-Do not require acceptance or stamp
-Must mention an exact amount to be paid
-Banker is liable only to the drawer
Ungku Omar Wan - Unconditional Order in writing
Sign-Sign
Borang -Drawn by bank
Dekat-Demand
Siam-Specific
PROTECTION
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THE PAYING BANKER
The BEA 1949 does provide some protection for the paying banker against some loss (when paid to wrong person) provided these conditions are fulfilled:
b) S.82 : the paying banker is protected if he pays a cheque which is not indorsed or is irregularly indorsed in good faith and in the ordinary course of business :check:
b) S.80 : if the paying banker pays a crossed cheque in good faith and in the ordinary course of business :check: Case Slingsby v District Bank (1932)
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b) S.60 : if a banker pays in good faith and in the ordinary course of business, a cheque drawn on him which bears a forged or unauthorized indorsement, he is not prejudiced by the forgery course :check:
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DUTIES
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Must ensure that he would not be liable for non-compliance with the mandate of the customer and for conversion.
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s.36(3)-A cheque is overdue if it has been in circulation for unreasonable length of time, normally after the expiry of six months or more from its date.
S.13(2)-A cheque which is dated may be ante dated or post dated or Sunday dated
Ante dated : bears a date before the date of issue,
Post dated : bears a date in a future.
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Calon-Customer
Girl Friend-Good Faith
Wan,Neelofa-Without Negligence