Doug takes a $500 check drawn by Gail to Gail's drawee bank to cash it.Gail has over $10,000 on deposit in her account.If her bank refuses to pay Doug:

Question

Quizplus · Accepted Answer

The bank has a duty to honor the check as long as there are sufficient funds in the account. In this case, Gail has enough funds to cover the check. By refusing to pay the check, the bank has breached its duty and is liable to Gail for the improper refusal. Doug does not have standing to sue the bank for non-payment since he has no contractual relationship with the bank. The age of the check is not relevant in this scenario. Therefore, only option C is correct.

Doug Takes a $500 Check Drawn by Gail to Gail's