Sal writes a check to Bob for $100, and then dies the next day. Two days after
Question:
Sal writes a check to Bob for $100, and then dies the next day. Two days after Sal dies, Bob presents the check to Sal's bank, which honors it, and later learns that Sal is deceased. Sal's estate complains that the bank shouldn't have honored the check because Sal was deceased. Which of the following statements is true?
A. The bank is liable for the check because it should have verified that Sal was alive.
B. The bank isn't liable for the check because at the time it didn't know Sal was deceased.
C. The bank isn't liable for the check because checks become void immediately on the death of the maker.
D. The bank isn't liable for the check because banks must honor checks presented within 10 days of the maker's death.
Introduction to Business Law
ISBN: 9780324826999
3rd Edition
Authors: Jeff rey F. Beatty, Susan S. Samuelson