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Case Study: Frank’s Negligence in the Face of Forgery
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Weldon owned an automobile dealership where his brother Frank was an accountant. When Weldon fell ill for six months, he asked Frank to handle his financial affairs. Frank agreed to do so and refused payment from Weldon for his services. However, Frank grew negligent of Weldon’s financial affairs and when one of Weldon’s clerks forged a company check from Weldon’s dealership and the drawee bank paid it out and charged Weldon’s account, Frank did not notify the bank for nine months after he received the statement showing the forged check.
What hope has Frank of compelling the bank to reverse the charge?
