Writing Checks Chapter 32 Business & Personal Law

Checks Draft drawn on a bank Payable on demand

Bank’s Duty Pay the check Failure is breach of contract with depositor if sufficient funds Failure is breach of contract with depositor liable for damages Suit must be by depositor

Stale Check More than 6 months old Bank may refuse to pay bank’s option

Writing Checks need not be on form

Parties drawer – check writer drawee – bank that has to pay payee – person to whom check is written

Negligence Drawers are liable for altered or forged checks IF their negligence contributed to the alteration or forgery. Don’t write in such a way that numbers can be added or altered. Fill in unused space with a line. Words take precedence over numbers.

Don’ts Don’t sign a blank check. Don’t change a check once it has been written. Do write “void” across the face of a spoiled check.