When there is a breach of an underlying contract for which an instrument was issued, the drawer of a check can order his or her bank to stop payment.

Question

Quizplus · Accepted Answer

This statement is true. If there is a breach of the underlying contract for which a check was issued, the drawer of the check has the right to order their bank to stop payment on the check. However, this does not release the drawer from their obligation under the underlying contract.

When There Is a Breach of an Underlying Contract for Which