This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 139.— May the teller of a bank refuse to cash a cheque which is correct in every particular and for which there are funds ? The case in mind is one where the teller had accidentally become aware that it was the drawer's intention to order the bank not to pay, but the teller knew of no reason why the drawer should stop payment, and no such notice had been received by the bank when cheque was presented.
Answer.—As the customer who drew the cheque is the only person who would have any right to complain of its refusal, and as the teller's action was in accordance with his wishes, although not formally notified, the refusal was in order. We think the teller took the risk of the drawer changing his mind, and of making the bank liable for having refused a cheque for which there were funds.