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, on which of the following parties should the risk of loss of the check be placed?

Question

Quizplus · Accepted Answer

According to the UCC, the risk of loss falls on the person who wrote the check, in this case, John, since he had not yet transferred ownership of the check to Perry by writing his name on it. Therefore, John bears the risk of the lost check and will need to issue a new one to repay Perry.

John Writes Out a Check for $100 on His Account