Check Payment Dina Produce Effect Bought Car Jai

61. Dina bought a car from Jai and delivered a check in payment of the same. Has Dina paid the obligation? Why?

a) No, not yet. The deliver/ of promissory notes payable to order, or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed, or when through the fault of the creditor they have been impaired.

b) Yes, because a check is a valid legal tender of payment.

c) It depends. If the check is a manager's check or cashier's check it will produce the effect of payment. If it's an ordinary check, no payment.

d) Yes, because a check is as good as cash.

SUGGESTED ANSWER:

a)