Bank Draft Accompanied By Instructions To Withhold Payment Until Signature Of An Enclosed Receipt In Full - Duty Of Bank On Refusal Of Payee To Sign Receipt
This section is from the book "Canadian Banking Practice", by John T. P. Knight.
This section is from the "" book, by .
Bank Draft Accompanied By Instructions To Withhold Payment Until Signature Of An Enclosed Receipt In Full - Duty Of Bank On Refusal Of Payee To Sign Receipt
Question 282. - A sends a bank draft payable to B, to B's bankers, together with a letter authorizing it to be paid only on signature by B of an enclosed receipt in full. B refuses to sign this receipt, and asks the bank to hold the draft. After holding a few days, the bank is requested by A to return the draft to him. What is the duty of the bank? Would they be liable to either party in either event?
Answer. - The duty of the bank, if it chooses to act in this transaction, is to carry out the instructions of A, whose agent it would be. The bank would be responsible to A for any breach of his instructions.
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