In Which of the Following Cases Is an Overdraft Created

question 44

Multiple Choice

In which of the following cases is an overdraft created in a drawer's account?

• A)when a properly payable check issued by the drawer is presented for payment, but the drawer's account does not have sufficient funds in it
• B)when the drawer issues a stop-payment order for a check, but the bank still goes ahead and pays the holder of the check
• C)when the bank pays the holder of a check in which the amount payable is altered to indicate a higher amount than was originally intended
• D)when the payee presents the check after six months from the date of the check and the bank still pays the holder

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Definitions:

Plaintiff's Negligence

Situations in a lawsuit where the individual bringing the case (plaintiff) is also found to have been careless or negligent, potentially reducing their compensation.

Plaintiff's Injury

Refers to the physical, emotional, or financial harm suffered by the plaintiff, initiating a legal action to seek compensation or relief.

Unforeseeable Acts

Events or occurrences that could not have been predicted or expected, often considered in the context of contracts and insurance.

Intervening Cause

An event or factor occurring after a party's initial act that significantly contributes to an outcome or event, potentially absolving the original actor of liability.