A bank's liability to the drawer of a check for wrongfully dishonoring a check is based largely on contract law.

Question

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A bank's duty to honor a check is determined by the contractual agreement between the bank and its customer. If the bank dishonors a check wrongfully, it is in breach of its contract with the customer and may be liable for damages under contract law. Therefore, the bank's liability to the drawer of a check for wrongfully dishonoring a check is largely based on contract law.

A Bank's Liability to the Drawer of a Check for Wrongfully