Ferdinand Bought a Boat from Isabelle

Multiple Choice

Ferdinand bought a boat from Isabelle.The price was $100 000.She required payment to be made by way of a cheque.Which of the following statements is TRUE?

A) Ferdinand can create a cheque by ordering his sister, Esmeralda, to pay $100 000 to Isabelle.
B) As soon as Ferdinand creates a valid cheque, Isabelle will acquire rights against the drawee.
C) By writing a cheque, Ferdinand will create an order that requires the drawee to credit his bank account.
D) Isabelle will not be able to cash Ferdinand's cheque unless she has a bank account.
E) If Ferdinand creates a valid cheque, his bank owes him an obligation to honour that negotiable instrument.