Bank One wrongfully dishonored a check that its customer, Brian, had written. Their contract provided that Bank One would timely honor checks when there were sufficient funds in Brian's account. Brian had sufficient funds, but a bank employee had made an error in transposing account numbers. As a result, Brian's mortgage payment was late and he owed a late fee of $35. Who must pay the $35 late fee?

Question

Bank One wrongfully dishonored a check that its customer, Brian, had written.  Their contract provided that Bank One would timely honor checks when there were sufficient funds in Brian's account.  Brian had sufficient funds, but a bank employee had made an error in transposing account numbers.  As a result, Brian's mortgage payment was late and he owed a late fee of $35.  Who must pay the $35 late fee?

Quizplus · Accepted Answer

Bank One must pay the $35 late fee because it was their error in transposing account numbers that caused the wrongful dishonor of the check, leading to the late payment.

Bank One Wrongfully Dishonored a Check That Its Customer, Brian