1. Writing Checks
Chapter 32
Business & Personal Law

2. Checks
Draft drawn on a bank
Payable on demand

3. 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

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

5. Writing Checks
need not be on form

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

7. 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.

8. 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.