A bank's customer whose signature has been forged may be barred from holding the bank liable if the customer's negligence substantially contributed to the making of the forgery.

Question

Quizplus · Accepted Answer

Under the rule of contributory negligence, if the customer was negligent in handling the security of their account or failed to report the forgery in a timely manner, they may be found to have contributed to the making of the forgery and therefore barred from holding the bank liable.

A Bank's Customer Whose Signature Has Been Forged May Be