Question

b.

.   Alhaji Amin draws an open cheque on Agric Bank Ltd payable to Bakari for Ghc2,000 on Bakari’s safe return from the Hajj. Bakari endorses the cheque to his friend Gariba to assist him in his garment business. Gariba endorses the cheque to Damali in payment for some agbada outfits he purchased from him.

When Damali presented the cheque at Agric Bank Ltd, it   was returned to him unpaid with the “payment Countermanded”.

What would be your answer if the cheque in (i) above was stolen from Damali’s boutique by Tiboa who, impersonating Damali, forges the endorsement of Damali and negotiates the cheque to Ebiam for provisions received from him

Answer 1

As we can clearly see that the cheque was returend by bank with the cause of "COUNTERMANDED" . We have to know what is the meanig of it .  In the financial world, countermand is usually applicable to payments; it means a customer of a bank or financial institution revoking instructions to pay, or stopping payment to another party. It can happen when a payer stops payment on a check or stops/reverses a transfer of funds.

So, if the cheque was stolen and presented in bank the bank did the same as above.