John writes out a check for $100 on his account at the Sacred Heart Bank to repay the $100 he owes Perry.He gives the check to Eliot and tells her to hand it over to Perry.However,Eliot loses the check before she can hand it to Perry.Later,John realizes that he had not written Perry's name on the lost check.According to the provisions of the UCC,the risk of loss of the check should be placed on ________.

Question

Quizplus · Accepted Answer

According to the UCC provisions, in case the check is lost before its delivery to the payee, the risk of loss falls on the drawer, which in this case is John. As he did not write the payee's name on the check, the check would be useless to anyone who finds it, and John would have to write another check to repay Perry. The bank or Eliot cannot be held responsible for the loss of the check in this case.

John Writes Out a Check for $100 on His Account