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Abyss Handed Over a $500 Check to Howard Brothers for Building

Question 63

Multiple Choice

Abyss handed over a $500 check to Howard Brothers for building him a terrace garden.The next day,Abyss notices that one part of the garden has not been finished.He calls his bank to order it to stop payment on the check.When Howard Brothers presents the check next week,the bank honors it.Which of the following is true in this case?


A) Since Abyss did not give the bank enough time to process a stop-payment order,the bank is not liable for this loss.
B) The bank is liable to recredit Abyss's account,since Abyss has suffered a loss by the bank's payment.
C) Abyss will not be able to show that he sustained any losses,hence cannot have his account recredited.
D) The bank is not liable for honoring any checks in good faith that are signed by the drawer-depositor.

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