Liu signs a check "pay to the order of Marv" drawn on Liu's account in National Bank.Liu later orders National not to pay the check,but the bank pays it over Liu's order.Subsequent checks written on Liu's ac?count "bounce." Most likely liable for the costs to Liu is
A)any party to whom a subsequent check was written.
B)Liu.
C)Marv.
D)National.

Question

Quizplus · Accepted Answer

National Bank is liable for the costs incurred by Liu due to their mistake of paying the check over Liu's order. As per the law, a bank is obligated to honor a check that is lawfully drawn, and any subsequent payments made by the bank are considered wrongful payments. Therefore, National Bank, and not Marv or any other party, is liable for the costs incurred by Liu due to the bounced checks.

Liu Signs a Check "Pay to the Order of Marv