Question

Mpho purchase a laptop from Ashley for R 5000. Mpho withdraws a cheque on capitec bank in favour of ashley or order for the R500. ASHLEY OWES MARY r5000 and negotiates the cheque to mary. mpho discovers that the laptop does not work and cancels the cheque. mary the cheque for payment, ony to discover that the cheque has been cancelled. what does mary possess explain your answer

Answer 1

Mary possesses a cancelled cheque from Mpho, which means she does not have a valid instrument for payment. When Mpho cancelled the cheque, it became null and void, and Mary cannot cash it or use it as payment for the laptop that Ashley sold to Mpho.

Step-by-step explanation:

When Mpho purchased the laptop from Ashley and gave a cheque as payment, a contract was formed between them. However, when Mpho discovered that the laptop was faulty and cancelled the cheque, the contract between Mpho and Ashley was terminated. Ashley could not negotiate the cancelled cheque to Mary because it no longer represented a valid payment instrument.

Therefore, Mary has no legal claim to the R 5000 owed by Ashley to Mpho. Ashley will have to find another way to pay the debt owed to Mary.