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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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Haydee
4 days 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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Rodney
17 days 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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Keena
17 days 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
19 days 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
21 days ago
Yes, Ramesh should make good the loss because he is the trustee.
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