Question
On Monday, Jim agrees to pave Sarah's driveway for $3,000 on Saturday and Sarah gives Jim a check postdated to Saturday for $1,000 to allow
On Monday, Jim agrees to pave Sarah's driveway for $3,000 on Saturday and Sarah gives Jim a check postdated to Saturday for $1,000 to allow Jim to buy the asphalt. On Wednesday, Sarah stops payment as she is afraid that Jim won't do the work due to weather reports of rain on Saturday. On Thursday, Jim endorses the check to Asphalt Supply in exchange for a ton of asphalt to perform the work. On Friday, Asphalt Supply deposits the check in its bank account and uses the funds to pay its employees. Friday evening Jim chokes and dies on his steak dinner, the asphalt in Jim's truck is stolen and not recovered [Jim has no other assets]. On the following Monday, the First Bank returns the check to Asphalt Supply and deducts the amount from Asphalt Supplies' account. Asphalt Supply sues Sarah for $1,000 and Sarah cross claims First Bank alleging that it should pay Asphalt Supply as she didn't get any goods nor services from Jim.
Who wins the case and why?
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