26 Sept 1989
SUM WING CREDITS LTD v. SHUN YIP TEXTILES LTD AND OTHERS
- Citation
- SUM WING CREDITS LTD v. SHUN YIP TEXTILES LTD AND OTHERS
- Court
- Court of Appeal
- Case number
- CACV155/1988
The court held that negotiation in breach of faith by the payee destroys the payee's title under s29(2); because the cheque was crossed and marked 'not negotiable' s81 prevents the indorsee from obtaining a better title than the defective title of the payee; the indorsee, alerted by the inscription, should have made enquiries and could not rely on s30(2) to defeat the drawer's defence; appeal allowed and judgment entered for the drawer.