This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 25.— A. purchases a draft on Toronto from a bank, and endorses it over unconditionally to B., and mails it to him. Some days later A. asks the bank to stop payment of this draft on the ground that an error of some kind has been made, the nature of which he declines to state. (1) Has the bank any power to stop the payment of the draft at the request of A. ? (2) If the bank refuses this request, would A. have any ground for action?
Answer.—The bank has the " power " to dishonour its own obligation by refusing payment, but it would not be justified in doing so on the mere request of A., without explanation of his reason for making it. The bank as drawer would in any case be liable to the "holder in due course" of the draft. Whether B. would prove to be such the facts do not show, but his endorsee for value (his bank for example) would probably be.
2. A. has no ground for action if under such circumstances as are mentioned the bank should, notwithstanding his request, pay the draft.