Question 345. - Cheque signed by "A" drawn on bank "B" (outside point) payable to "C" with exchange. "C" deposits cheque with his bank "D" which adds exchange at 1/4 of 1%. When presented to bank "B" exchange is changed to 1/8 of 1% and certified as such. Has bank "B" the right to change cheque and certify, or should same be returned to bank "D" stating that they would pay as face amount plus 1/8% of 1% exchange?

Answer.-The instrument is, strictly speaking, not a cheque since the words " with exchange " are not sufficient to indicate the sum certain that is intended to be paid, and the drawee bank would be justified in refusing to honour it at all. The general practice, however, is to honour such items for the amount asked for, or return them stating what amount will be paid. Bank "B" had no right to make any change in the item in question.