Party in Good Faith.

Question 202.— A issues a cheque payable to B or order, and subsequently stops payment of same. The cheque is negotiated to C, who does not know of payment having been stopped.

The cheque having been dishonoured, is C entitled to recover the amount from A, the drawer of the cheque?

Answer.—The holder's position in this case is precisely the same as that of the holder of any negotiable bill of exchange. If notice of dishonour has been given he can sue both the drawer and the endorser.