This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 200.— The bank on which a cheque, payment of which has been stopped, is drawn, receives it by mail from an outside point. Through oversight the cheque is marked and stamped paid. The error is discovered before three o'clock and the cheque sent to protest. The teller marks the cheque " cancelled in error," but the ledger-keeper forgets to remove his initials. Do the initials of the ledger-keeper commit the bank to pay the cheque?
Answer.—We think not. As the bank did not as a matter of fact honour the cheque, and as the initials were left on in error, the holder could not claim any benefit from such an error.