Not anymore, I hope.bond-007 said:Indeed, but this local shop seems to take 3rd party cheques from everyone and anyone.
contemporary said:if the cheque is crossed though.
bond-007 said:The issue here is that I wrote out a cheque to the person B in this case for work done, but I had to stop the cheque becuase he legged it with my stuff and did nothing.
B then went to the local supermarket and bought goods to the value of cheque. C the shop is chasing me for the money.
I assume he has no course of action against me?
Case: Lewis v. Averay (1972)
A dishonest person proposed to purchase a car from the plaintiff and to pay for it by cheque. He claimed to be a well-known television actor, and produced a false pass from the studios bearing a photograph which resembled the aforementioned actor. The plaintiff then accepted the cheque and allowed him to take away the car. When the cheque was dishonoured, the plaintiff attempted to recover the car from the defendant who had purchased it in good faith from the dishonest person.
Held: The plaintiff could not recover the car. The contract between the plaintiff and the dishonest person was not void, but only voidable, as a result of the fraudulently induced mistake. The dishonest person had transferred the voidable title to the defendant.
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