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Banks And Banking--Damages--Liability Of Bank To Depositor For Wrongful Dishonor Of Check

Michigan Law Review

In an action by a creditor against his debtor for the non-payment of the debt, the ordinary measure of damages for non-performance of the contract is the sum of money itself with interest at the legal rate from the time it was due. Tradition has it that the relation between bank and depositor is that of debtor and creditor. Clearly, it is a contractual relationship. The contract, however, is not merely to pay the creditor but also to pay, on his behalf, such third persons as he may designate. It is not an adequate description to say, merely, that the …