Bank customer Aliaga Medical Center (Aliaga) opened a checking account with Harris Bank.

Category:

Bank customer Aliaga Medical Center (Aliaga) opened a checking account with Harris Bank.

0
0

Bank customer Aliaga Medical Center (Aliaga) opened a checking account with Harris Bank. Aliaga issued a $50,000 check, which bore the notation “void after 90 days.” More than 90 days after the check was issued, Harris honored the check. Aliaga now seeks reimbursement from Harris, claiming that the notation served as a stop payment order after the 90 days. Who will prevail? Why?

Answer & Explanation (1)

Explanation
The customer-bank relationship usually gives the customer a right to stop payment order given to a bank. The customer is usually required to send a stop order in form of writing to the bank and this is often 14 days after the check has been issued. Writing a stop order remains binding for 6 months. Customer A.M. center has written a letter of annotation to the bank that the check will be void for payment after 90 days. After the 90 days, the bank Harris honoured the check meaning it has dishonored the customer's right. Incase of any loss, then the bank will be liable.

Answer
Between the two, customer A.M. Center will most likely prevail. This is because they were issued with a check which had a limit of 90 days but Harris Bank honoured the check after the 90 days. Bank Harris may then be liable to reimburse customer A.M. center.

Purchase answer to view it. $5

Login/register for free and load your wallet instantly with $5 to buy and view this solution.

Category:

Looking for homework help or essay writing assistance? We're a perfect match for you!

Coursepivot experts will deliver a unique and quality paper to your mail within your stated deadline. Try us today!

Order Now