August Signed a Check for $100

Multiple Choice

August signed a check for $100.00 payable to Whitney on July 1. Whitney forgot to cash the check until July 20. In between that time, August monitored his checking account daily and saw that his balance remained consistently at $120.00. On July 18th, seeing no change in his account, he wrote another check to Elise for $110.00 and she immediately cashed the check. On July 20th, when Whitney attempted to cash August's check for $100.00, the bank would not cash it due to insufficient funds. Which statement below is correct?

A) Since Elise received her check after Whitney did, she would owe that money to Whitney.
B) August remains liable to pay Whitney the amount of the check upon demand.
C) Elise waited too long and therefore, her right to enforce the terms of the negotiable instrument were extinguished.
D) August is liable only to Whitney but not Elise since when he wrote the check to Elise, he did not actually have the money.