Question

What is dishonor of cheques explain the consequences of wrongful dishonor

Answer 1

Wrongful dishonor refers to a bank's failure to honor a valid negotiable instrument, such as a check or draft that has been presented to it for payment. If the check is valid and there are sufficient funds in the account to cover it, a bank's failure to honor it within the time period stipulated by the Uniform Commercial Code (UCC) would constitute wrongful dishonor.

Answer 2

wrongful dishonor ➡️ Failure of a bank to honor a valid and payable bill of exchange or negotiable instrument within a statutory period If the bank's customer suffers provable harm, the bank may be liable for damages.

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