1. B purchased an automobile from C for $500. B gave C a cheque for $500 that C, a minor aged 16,

endorsed to D as payment for D’s motorcycle that C had purchased. D presented the cheque for payment, only to discover that B had insufficient funds in the bank for payment, and the cheque was dishonoured. Advise D of the law in this instance.

2. McMullan opened an account at a bank and received a box of personalized cheques bearing his name and address. Later, he closed the account. Several months after he closed the account, he wrote a cheque on the account and gave it to a friend as payment of a loan he had received from the friend. Discuss the issues raised in this case.