Asked by Emily Esparza on Jul 12, 2024
Verified
In Aliaga Medical Center v.Harris Bank,the case in the text,why was the bank within its rights to pay the check after 90 days,despite the words "void after 90 days" written on the check?
A) The bank did not have a duty to confirm the check with Aliaga.
B) Aliaga failed to stop payment of the check under the terms of the parties' agreement.
C) Aliaga failed to renew his stop-payment order after six months passed.
D) The bank notified Aliaga that it was going to honor the check despite the specific language.
Void After 90 Days
A phrase typically used on checks or legal documents indicating that the document or check is no longer valid if not used or cashed within 90 days from its date of issuance.
Stop Payment
A directive issued to a bank for the termination of a check or payment still pending processing.
- Apprehend the legal bases and banking practices concerning the handling of checks and stop-payment orders as demonstrated through legal precedents.
Verified Answer
TH
Theresa HickmanJul 19, 2024
Final Answer :
B
Explanation :
The agreement between the parties authorized the bank to honor stale checks and required Aliaga to take certain action to create a stop-payment order on a check-which he failed to do.The use of "void after 90 days" did not override the parties' prior agreement and ultimately,was ineffective.
Learning Objectives
- Apprehend the legal bases and banking practices concerning the handling of checks and stop-payment orders as demonstrated through legal precedents.