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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
[All GLO_CWM_LVL_1 Questions]

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?

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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
17 days ago
B) No
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Cordelia
18 days ago
I agree, Ramesh is bound to make good the loss in this situation.
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Yuki
24 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
20 days ago
A) Yes
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Trina
29 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
20 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
21 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
3 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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Francisca
1 months ago
No, Ramesh should have taken proper precautions to avoid the loss.
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Sommer
1 months ago
Yes, Ramesh has a fiduciary duty to ensure the trust funds are properly remitted.
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Salome
2 months ago
No, Ramesh is not bound to make good the loss.
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Aracelis
2 months ago
Yes, Ramesh is bound to make good the loss.
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Keena
3 months ago
I'm not sure, but I think Ramesh may still be responsible as the trustee regardless of who drew the bills.
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Thad
3 months ago
I disagree, I think Ramesh is not bound to make good the loss as the bills were drawn by a person of high creditworthiness.
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Jacquline
3 months ago
Yes, Ramesh should make good the loss because he is the trustee.
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