Question

Is it correct that the duty of the customer is to disclose forgery and to exercise reasonable care drawing cheques?

Option 1: True
Option 2: False

Answer 1

The statement is true; customers have a duty to disclose forgery and exercise care when drawing cheques to prevent fraud.

Step-by-step explanation:

It is indeed correct that the duty of the customer includes the obligation to disclose forgery and to exercise reasonable care when drawing cheques. This means that customers must be vigilant in reviewing their bank statements for any unauthorized transactions and notify their bank promptly if they detect any discrepancies. Furthermore, when writing cheques, they should take precautions such as using indelible ink and writing the amounts in a manner that prevents unauthorized alterations. Exercising reasonable care when drawing cheques involves taking precautions, such as keeping the chequebook secure and using proper writing techniques, to prevent fraud or errors.