Question 489.— A draft for collection was accepted for less than face, but charged to drawee's account as for full face in error. Bank from whom received refuse to refund amount overpaid. Must they repay, or on whom should loss fall?

Answer.—This appears to be a clear case of payment under mistake, and one where the party receiving the money should refund the amount overpaid.

The partial acceptance has of course important consequences with respect to the drawer and endorsers, but it does not make the acceptor liable for more than the partial amount, and having paid more, in error, he is entitled to recover the excess unless special circumstances intervene which would debar him from doing so.