Question

Henri was in the process of negotiating the purchase of a high-end laptop computer from The...

Henri was in the process of negotiating the purchase of a high-end laptop computer from The Computer Supply Co. As a result of a number of telephone calls to the Computer Supply Co., Henri eventually negotiated a price of $3,200 for the computer. He prepared a cheque in the amount of the purchase price and signed it. However, because he was uncertain as to the exact spelling of the company name, he left that part of the cheque blank. He placed the signed cheque in his office desk drawer with the intention of making a telephone call to the company later in the day for the information necessary to complete the cheque. Henri determined the company's correct name while at lunch, but when he returned to the office, he discovered that the cheque had been stolen. Shar, a fellow employee of Henri’s, had taken the cheque, filled in the cheque payable "to bearer," and used it to purchase items at a store where Henri frequently shopped. The store owner accepted Henri’s cheque without question, as he was familiar with his signature, and later presented it to Henri’s bank for payment. Within minutes after the bank had paid the cheque, Henri telephoned to have the bank stop payment. Advise the parties of their respective rights (if any) and liability (if any).

Homework Answers

Answer #1

As a general rule, a bank customer (here Henri) has the right to Stop payment on a cheque before the cheque has been cashed/paid. Generally, once the cheque has been encashed by the recipient, the bank customer (Henri) won’t be able to make a stop payment with the bank.

In some cases of a certified cheque (a personal cheque of the depositor (Henri), drawn on the depositor's own account, and then signed by an authorized bank officer), stopping payment after certification is allowed in some situations. But, this is only possible when there is no third party right involved.

However, if the rights of the third party are involved, which in this case are the rights of the Store at which Shar purchased items, the bank is not liable to stop the payment once the cheque has been paid.

Thus, the Store owner will get its dues from the bank and Henri will be at a loss due to the stolen cheque.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Morris made two purchases. He purchased his neighbor Cordelia's typewriter and a computer from Crazy Computers....
Morris made two purchases. He purchased his neighbor Cordelia's typewriter and a computer from Crazy Computers. Regarding the typewriter, Cordelia had bought it on credit from Jack's Typewriters. Cordelia had financed the purchase with Jack's and signed a promissory note and a security agreement covering the purchase. The creditor, Jack's, did not file a financing statement, relying on the concept of automatic perfection for purchase money security interests in consumer goods. Morris was unaware of the history of the typewriter....
Moville is a small island in the eastern Caribbean which has a population of approximately 6,500...
Moville is a small island in the eastern Caribbean which has a population of approximately 6,500 persons and only one bank, the National Bank of Moville (“NBM”). NBM is experiencing some legal woes with the Kardashka family. The Chairman of the Board of Directors of NBM and head of the Kardashka family is Robert Kardashka, a self-made billionaire who owns two of the four hotels in Moville. Robert does not have a university degree and has no experience in the...
Question: Facts: Bill, a contractor in Brentwood, New York, prepared a bid for construction of an...
Question: Facts: Bill, a contractor in Brentwood, New York, prepared a bid for construction of an office bu... Facts: Bill, a contractor in Brentwood, New York, prepared a bid for construction of an office building for Fred. In preparation of his bid, Bill asked Sam, a tile manufacturer in Setauket, New York, for a quote on tile to Bill's specifications. On October 27, 2006, Sam returned a statement on his letterhead with a quote of $8,000.00 which stated that the...
10. Scott takes $10,000 from his bank account to set up a small donut-shop business. He...
10. Scott takes $10,000 from his bank account to set up a small donut-shop business. He meets with an attorney, and finds out he can set up a sole proprietorship for under $100, but a corporation would cost over $500 ($175 to the state, about $400 to the attorney). He decides on a sole proprietorship. He signs a one-year lease, and starts his business. After six months of operations, he closes the business because of much-lower-than-expected sales. After using the...
Question 61 Cal plans to open a small business marketing consulting firm operating as a corporation....
Question 61 Cal plans to open a small business marketing consulting firm operating as a corporation. He signed an office lease with landlord as Marketing Priorities, Inc. prior to incorporating the business. Shortly thereafter, he gave up the consulting idea and took a job teaching. Is Cal personally liable on the lease? ? Question 62 The principal of a company co-mingled his business expenses and personal expenses. That is, he used business profits to pay his ex-wife’s alimony. When the...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...
For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The...
For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The chief executive of Alibaba Group Holdings Ltd. was working on a secret plan that would sound crazy even to many of his own colleagues 100 miles away in Hangzhou. Zhang wanted to launch a startup inside the e-commerce giant that would combine a grocery store, a restaurant, and a delivery app, using robotics and facial recognition to speed up logistics and payment. That project,...
Question 1 of 15 Linsay’s Landscaping wants to make notes in QuickBooks each time she services...
Question 1 of 15 Linsay’s Landscaping wants to make notes in QuickBooks each time she services a client to streamline the invoicing process at the end of the month. She does not want these records to affect any month or year to date financial reports throughout the month until she invoices the client. Which of the following transaction types do you recommend she uses to achieve this goal? A. Invoice B. Credit Memo C. Sales Receipt D. Delayed Charge E....
Facts from Client Interview Tumutch and Lotta Bolloni have been married for four years. They both...
Facts from Client Interview Tumutch and Lotta Bolloni have been married for four years. They both work very hard at their jobs – Lotta being an accountant and Tumutch working as a construction manager. They decide to splurge and look into booking an all-inclusive vacation to the enchanting Fantasy Island, in Fiji for February 2020. The Bollonis do some research into different travel packages and get quotes from various agencies. They narrow their choices down to three possibilities: Travelcations &...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Despite guidelines regulating eligibility for special education services, today’s special education classrooms continue to be over   populated...
    asked 5 minutes ago
  • A. Find the sum 3+8+13+...+28 B.  Find the first term and the common difference of the arithmetic...
    asked 8 minutes ago
  • Explain why in a multiplier model a rise in household wealth relative to target will ceteris...
    asked 28 minutes ago
  • What political and economic roles have Japan and the United States played in Southeast Asia in...
    asked 31 minutes ago
  • What does the function split do? Explain with an example. ​ ​ def split(L, first): return...
    asked 32 minutes ago
  • Code a simple Editor class with 2 constructors (one default, one with a string for a...
    asked 48 minutes ago
  • Using a greedy algorithm solve the following instance of Interval Scheduling {(2,12),(1,7),(3,5),(8,10),(7,14),(9,16),(10,14),(12,13),(17,22),(13,14),(15,20),(14,18),(20,30),(22,25),(26,27),(25,29),(24,31)}
    asked 53 minutes ago
  • * Write a Java program that calculates and displays the Fibonacci numbers * First prompt the...
    asked 1 hour ago
  • Brownie Company sponsors a defined benefit pension plan for its employees. On January1, 2020, the following...
    asked 1 hour ago
  • A new muscle relaxant is available. Researchers from the firm developing the relaxant have done studies...
    asked 1 hour ago
  • consider the information about the economy of Pakistan note that the currency of Pakistan is the...
    asked 1 hour ago
  • You arrive at your car and find that your meter has expired and you have gotten...
    asked 2 hours ago