Asked by Megan McDermott on Apr 27, 2024
Verified
Charles writes a check payable to Jane on his account at Friendly Bank.Friendly accepts the check,but subsequently determines that there are insufficient funds in Charles' account to pay the check.Explain what liability Charles has.
Friendly Bank
Informal term for a bank with which an individual or business has a good relationship and favorable terms.
Liability
A legal responsibility or obligation, often involving compensation for harm or damage caused.
- Evaluate the consequences of dishonor and identify the duties of banks and other entities involved in transactions with negotiable instruments.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
If a bank accepts a draft,the drawer is discharged.Hence,Charles has no liability.
Learning Objectives
- Evaluate the consequences of dishonor and identify the duties of banks and other entities involved in transactions with negotiable instruments.