When There Is a Breach of an Underlying Contract for Which

question 28

True/False

When there is a breach of an underlying contract for which an instrument was issued, the drawer of a check can order his or her bank to stop payment on the check.

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Definitions:

Legal entity

An organization or structure that is recognized by the law as capable of rights and duties.

Ethical standard

Ethical standard refers to the principles that guide moral conduct within a profession or organization, outlining acceptable behaviors and practices that ensure fair and just operations.

Corporation

A legal entity that can own property and enter into contracts for the benefit of its shareholders.

Social constitution

The way in which a society is organized, including its social structures, norms, and institutions, and how they interact to shape the behavior and attitudes of its members.