What if Edgar drew a cheque like this where the words and figures are different…
“Amount – Five Thousands Dollars Only $500/-“
In the Forum page of ST a couple of days, DBS Bank apologised to the account holder for wrongly clearing a cheque where the words and figures differ. DBS said they should not have cleared the cheque.
I wish to question whether DBS’s position of not clearing such a cheque is legally correct.
In the Banking Law class that I attended many years ago, I was told that the Bank should honour the cheque based on the “words” stated.
Has the law changed since the years after my Banking Law class? Or have I heard wrongly? If you are not from Singapore, can share with me your country’s practice?