With billions of dollars worth of commercial paper changing hands daily, the business world cannot afford uncertainty as to the duties of the various parties to the paper, for uncertainty hinders negotiability. This is especially true in the case of the relationship between the drawer-depositor of a check and the drawee bank. Clearly the drawee may not normally debit the drawer's account when it pays a forged or materially altered instrument. However, when the drawer carelessly executes a check or does not bother to examine his checks when they are cancelled and returned to him, different considerations arise, altering the general rule. Does the business world know what these considerations are? Do drawers know what degree of care is required of them when they launch checks onto the seas of commerce? Perhaps not, and thus the reason for this note--to point out the problems in this area, note the solutions produced by the case law and statutes, and suggest change where change perhaps is needed.
J. Timothy White,
The Scope of the Depositor's Duty To Prevent and Discover Alterations and Forgeries of His Checks,
16 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol16/iss4/10