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Question
Winston was going to be out of town on September 1, when his rent would be due. On August 20 he gave his landlord Becky a check dated September 1, with instructions not to deposit or cash the check until September 1. As the instructions to Becky were clear he did not notify the bank of the postdated check. On August 21 Becky deposited the check in her account at her bank and the check was dishonored on August 23. Which of the following is true of this scenario?
A. Winston has recourse against Becky as she did not follow his instructions.
B. Winston has recourse against Becky and the bank since it failed to refuse the item when deposited.
C. Winston has recourse against the bank as it failed to notify Winston of the check acceptance and failed to refuse the item when deposited.
D. Winston did not notify the bank not to pay it before the date on the check, hence has no recourse.
Answer
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