Question 279. - A cheque is presented bearing on the face of it a notation to the effect that it is issued in payment of "balance in full to date." On the back it is endorsed by the payees and above the endorsement is written "received on account only" In these circumstances would the bank be justified in refusing to honour this cheque on account of its endorsement?

Answer. - The bank on which the cheque is drawn may refuse it on account of the endorsement, but on the other hand, the bank under section 66 of the Bills of Exchange Act, may pay the cheque and still not be liable. The safer plan, however, would be to refer to the drawer.