This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 170.— (1) I make a cheque payable to John Jones. This falls into the hands of the wrong John Jones, who presents it, demanding payment. The teller, knowing him to be John Jones, pays cheque. Is the teller liable for paying to the wrong person? (2) Is the hank liable?
Answer.—Although the rule seems a hard one, the payment in such a case is not properly made, and the bank has no right to charge the cheque to the customer's account.
As between the bank and the teller, the latter is of course in the same position as if he paid the cheque on a forged endorsement.