The Oral Stop Payment Order Marie wrote Ray a check for landscaping her front la
ID: 402012 • Letter: T
Question
The Oral Stop Payment Order
Marie wrote Ray a check for landscaping her front lawn. Marie paid Ray in advance. The check was dated for five days later than the date of issuance. Ray was supposed to start landscaping on Monday. That Friday, Ray still had not shown up to do the job. Marie had the work done by someone else. Marie gave her bank, Second Citizens, an oral stop payment order on the check to Ray. Twenty-three months later, the check emerged and Second Citizens honored it. Marie has filed suit against Second Citizens for acting unreasonably under the circumstances.
Is Second Citizens liable to Marie for paying the 23-month-old check when there was an oral stop payment order? What laws are applicable to this fact pattern? Discuss your reasons for your answer.
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Explanation / Answer
no Second citizen will not be liable for this beause
The Bank assumes no liability for the payment of postdated checks, unless notice of such a check is given to
the Bank which describes the item with reasonable certainty. Such notice, if given orally, will be valid for 14 days
and must be given in such manner and with such time as to allow the Bank to act reasonably upon it.
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