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WAEC Commerce 2013 Question 22

Question 22

Banking

'Not negotiable' on a cheque means

  1. A.ownership can be transferred to the third party by mere delivery.
  2. B.the cheque can be paid over the counter on endorsement.
  3. C.the holder has no better title than the person who transfers it.
  4. D.ownership rests with the one who issued the cheque.
Show the answer and explanation

Answer: C (the holder has no better title than the person who transfers it.)

Explanation

A 'not negotiable' crossing means the cheque can still be passed on, but the receiver gets no better title than the person who gave it to him.