Francis Jeffers purchased a cashier's check in the amount of $5,000 from Northern Star Bank. The check was made payable to Kyle Naughton and was delivered to him

Question

Twelve months later, the Northern Star Bank branch manager informed Jeffers that the cashier's check was still outstanding. Jeffers subsequently signed a form requesting that payment be stopped and a replacement check be issued. Northern Star Bank issued a replacement check to Jeffers. Eight months later, Naughton deposited the original cashier's check in his bank, which was paid by Northern Star Bank. Northern Star Bank requested that Jeffers repay the bank $5,000. When he refused, Northern Star Bank sued Jeffers to recover this amount and the court awarded Northern Star Bank damages amounting to $5,500. In which of the following circumstances, if true, would the court have ruled in Jeffers' favor?
A) Jeffers cashed the replacement check before Naughton had presented the original check at his bank.
B) Jeffers paid Naughton the $5,000 in cash after obtaining the replacement check from Northern Star Bank.
C) Jeffers indemnified Northern Star Bank for potential damages arising from the issue of the replacement check.
D) Jeffers renewed the stop-payment order on the original check at the end of six months.

Answer 1

D