Clearwater Bank agrees to honor Dockside Boatbuilders,Inc.'s checks even when its account has insufficient funds.Edna,Dockside's bookkeeper,writes the checks.Later,the bank refuses to pay an item payable to Fleet Supply Company that would create an overdraft.This is

Question

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Clearwater Bank initially agreed to honor Dockside Boatbuilders' checks, even if their account had insufficient funds. However, when they refuse to pay an item that would create an overdraft, they are wrongfully dishonoring the check. This is the bank's fault and a wrongful dishonor.

Clearwater Bank Agrees to Honor Dockside Boatbuilders,Inc