Question 280. - B & Son, grocers, made an assignment. Later B issues a cheque in favour of C or order for $3. On the face of the cheque under the amount in the body of the cheque B writes: "Full settlement of all claims against B & Son." B has the cheque marked by his bank before handing to C. The cheque later comes duly endorsed through the clearing from C's bank to B's bank, the words "Full settlement of all claims against B & Son" having been ruled out. Are they liable in any way?

Answer. - The bank should pay the cheque on presentation. The clause referred to is not any part of the order to pay and its removal is not a "material" alteration.

Note. - In "Questions on Banking Practice," issued tinder the authority of the British Institute of Bankers (6th ed. Nos. 56 and 775), the following answers are given to similar questions:

"No. 456. The cheque being drawn as an unconditional order to pay money, no notice need be taken by the paying banker of the insertion or deletion of a memorandum in the body of the cheque as mentioned, but he would be quite justified in returning it in this case if he saw fit."

"No. 775. In our view the words 'in full settlement' may, as between the bankers and their customer, be considered as merely an addition to an instrument already complete, and as being addressed, not to the banker, but to the payee, in order to show upon what terms that complete instrument is to be received by him. It is no part of the ordinary duty of bankers to settle accounts between their customer and his creditors. While this is our view, we think the cheque is drawn in a form calculated to embarrass, and that the bankers would, for that reason, be justified, as between themselves and their customer, to whom alone they are responsible, in returning it. They probably would think it wiser to do so in most cases of this kind."

The point at issue has never been definitely and authoritatively settled and Maclaren (Bills, Notes and Cheques, 5th ed., p. 371), says the law both in England and Canada is in a very unsatisfactory condition. He is of opinion that the striking from a cheque such words as "in full of claim" would be a material alteration which would make the cheque void, and, being apparent, the bank would cash it only at the risk of being held liable.