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can anyone please answer this question?? ( gcl case law)
(a) Ram agrees to sell and deliver a ship to Shyam, to be paid for byShyam's acceptance of four bills of exchange, for sum amounting toRs.50,000 to be drawn by Ram on Shyam. The bills are drawn and accepted, but the ship is not delivered according to the agreement. Ramsues Shyam on one of the bills. State with reasons whether Shyam canobtain cancellation against all bills?
Replies (4)
One of the condition for a Valid Bill of Exchange is that IT MUST BE ACCEPTED AGAINST GOOD CONSIDERATION
and by default it is assumed that Consideration Exists.
Now Shyam has to prove that there is No consideration(as ships not delivered) and then all Bills will stand VOID.
thanx a lot... :)
CAclubindia
