As payment in advance for services to be performed, Acton signed and delivered the following instrument: December
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December 1, 2015
LAST NATIONAL BANK
MONEYVILLE, STATE X
Pay to the order of Olaf Owen $10,500.00 _______ Ten Thousand Five Hundred Dollars ______. For services to be performed by Olaf Owen starting on December 6, 2015
(Signed) Arthur Acton
Owen requested and received Last National Bank's certification of the check even though Acton had only $9,000 on deposit. Owen indorsed the check in blank and delivered it to Dan Doty in payment of a preexisting debt.
When Owen failed to appear for work, Acton issued a written stop payment order ordering the bank not to pay the check. Doty presented the check to Last National Bank for payment. The bank refused payment.
What are the bank's rights and liabilities relating to the transactions described?
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Related Book For
Essentials of Business Law and the Legal Environment
ISBN: 978-1305075436
12th edition
Authors: Richard A. Mann, Barry S. Roberts
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