AAFM Exam GLO_CWM_LVL_1 Topic 4 Question 88 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 88
Topic #: 4

Ramesh living in Kolkata is a trustee for Brijesh living in Mumbai, Ramesh remits trust funds to Brijesh by bills drawn by a person of high creditworthiness in favor of the trustee as such and payable at Mumbai. The bills later got dishonored. Is Ramesh bound to make good the loss?

AYes

BNo

Show Suggested Answer

Suggested Answer: A

by Geraldine at Sep 07, 2024, 03:24 PM

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Ira

2 months ago

Tricky one. I'd say Ramesh is bound to make good the loss, unless he can prove he exercised reasonable care in selecting the bill drawer. Gotta love these trust law conundrums!

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Phil

16 days ago

B) No

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Cordelia

17 days ago

I agree, Ramesh is bound to make good the loss in this situation.

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Yuki

23 days ago

A) Yes

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Chun

2 months ago

Haha, Ramesh should have just carried the cash in a suitcase - much safer than relying on bills of exchange! Though I guess that would've been a bit suspicious.

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Tamala

19 days ago

A) Yes

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Trina

28 days ago

B) No

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Gracia

1 months ago

A) Yes

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Haydee

2 months ago

But wait, if the bills were drawn by a person of high creditworthiness, how could they have been dishonored? Ramesh shouldn't be liable for that.

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Lilli

19 days ago

That's true, but if the bills were drawn by a person of high creditworthiness, Ramesh may not be held liable for the loss.

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Lillian

20 days ago

B) No

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Tony

1 months ago

But in this case, Ramesh as a trustee is responsible for ensuring the trust funds are handled properly.

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Tegan

2 months ago

A) Yes

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Rodney

2 months ago

I think Ramesh is definitely bound to make good the loss. As a trustee, he has a fiduciary duty to ensure the trust funds are properly remitted to Brijesh.

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