BANKER'S DRAFT AND RELATIONSHIP WITH A CHEQUE

• Date: 07 September 2019

"Provisions similar to Sections 3(1) and 5 of the Bill of Exchange Act were considered in the rather technical decision of the House of Lords in Gordon v. London City and Midland Bank Ltd. (1903) A.C. 240 where it was held that a bankers’ draft payable to order on demand addressed by one branch of a bank to another branch or head office of the same bank and not crossed is not a cheque. Although in this present case the drafts were addressed by one branch of the defendant bank to another, they were all crossed, unlike those in Gordon’s case. Lord Lindley observed at page 250: - "But I agree with the Court of Appeal in thinking that the...