Qita Has the Authority to Issue Checks on Behalf of Retail

question 5

Multiple Choice

Qita has the authority to issue checks on behalf of Retail Center. Qita creates a dozen unauthorized checks that she deposits in her account at State Bank. The payee line on each check is blank. In a suit between Retail Center and State Bank over the loss, the party or parties most likely to be held liable is

• A)Retail Center.
• B)State Bank.
• C)Retail Center and State Bank, in prorated amounts.
• D)none of the choices.

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Definitions:

Oral Contract

An agreement between parties that is not written but is fully valid and enforceable if it meets certain legal criteria.

Interest in Land

Interest in land refers to legal rights over property, including ownership, use, or other financial benefits associated with real estate.

Statute of Frauds

A legal concept requiring certain types of contracts to be executed in writing and signed by all parties involved, in order to be enforceable.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence that contradicts or adds to the terms of a written contract.