Question
On January 29, Edwards, a wholesale grocer, made a large deposit in cash to his account at Cattlemen's Bank. In error, Edwards' deposit was posted
On January 29, Edwards, a wholesale grocer, made a large deposit in cash to his account at Cattlemen's Bank. In error, Edwards' deposit was posted to the account of Edmunds, another depositor. On the following day, Nevins, a local produce-jobber deposited a check to his account at Watermill Bank drawn on Cattlemans Bank to Nevin's order by Edwards. When the check was presented for payment, Cattlemen's bank refused to honor it and stamped it "Insufficient Funds." Watermill bank promptly returned the check to Nevins. If Edwards's deposit on January 29 had been properly posted, his bank account balance would have been substantially greater than the amount of his check to Nevins. Edwards sued the Cattlemen's bank for damages.
1. What should the recovery be? Why? Should Edwards recover?
2. Assume that (a) Edwards check had been given to Nevins in payment for a car-load of produce that Edwards had arranged to resell at a large profit, (b) the bank was aware of this (c) on dishonor of the check, Nevins stopped the goods in transit and (d) Edwards, as a result, lost his profit on the resale of the goods. May Edwards recover such lost profits from the bank? Explain.
This is a textbook question, unfortunately this is all the information that they give us, please help.
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