A thief stole Art's checkbook and forged Art's name as drawer of a check. The drawee paid the check in good faith and sent it to Art with the monthly statement on January 3, 2008. The thief forged other checks during February and March of 2008, which the drawee in good faith paid. All paid checks were sent to Art with monthly statements. On May 25, 2009, Art discovered all of the forgeries and notified the drawee. For which check(s) is Art entitled to be reimbursed?

Question

Quizplus · Accepted Answer

Art is not entitled to be reimbursed for any of the checks because he failed to notify the drawee of the forgeries within a reasonable time after receiving the statements, which is typically required to hold the drawee liable for forged checks.

A Thief Stole Art's Checkbook and Forged Art's Name as Drawer