Asked by Ashley Fawcett on Oct 01, 2024
In which of the following cases will a drawer and any persons who previously indorsed the check be discharged of their liability on the check?
A) By certification of a check.
B) By drawing a cashier's check.
C) By drawing a teller's check.
D) By death or incompetence after signing a check.
Certified Check
is a check for which the issuing bank guarantees availability of funds by verifying the account's balance and then setting aside the check amount.
Cashier's Check
A check issued by a bank, drawn on its own funds rather than that of a personal account, and signed by a cashier.
Drawer's Liability
Refers to the obligation of the drawer (the person who writes a cheque or draft) to ensure the availability of funds in the account for the amount specified for payment to the payee.
- Familiarize yourself with the descriptions and features of different forms of checks, including but not limited to stale, certified, cashier's, and teller's checks.
- Gain familiarity with the connections between the drawer, drawee, and payee in check-based transactions.
Learning Objectives
- Familiarize yourself with the descriptions and features of different forms of checks, including but not limited to stale, certified, cashier's, and teller's checks.
- Gain familiarity with the connections between the drawer, drawee, and payee in check-based transactions.