Jacob writes Phillip an uncertified check for $500 on January 1.Seven months later,Phillip presents the check at the bank.The bank pays the check in good faith without consulting Jacob.The bank
A)does not have the right to charge Jacob's account for $500.
B)only has the right to charge Jacob's account for $250.
C)has the right to charge Jacob's account for $500.
D)can be held liable for breach of contract.

Question

Quizplus · Accepted Answer

The bank has the right to charge Jacob's account for $500 because Phillip presented the check within the time frame allowed by law (typically six months). The fact that the check was uncertified does not absolve Jacob of his obligation to pay it. The bank acted in good faith by paying the check without consulting Jacob, and is not liable to Jacob for any damages resulting from the transaction.

Jacob Writes Phillip an Uncertified Check for $500 on January