Section 4-4-201(a) states that a collecting bank “is an agen…

Section 4-4-201(a) states that a collecting bank “is an agent or sub-agent of the owner of the item.” Further, the statute states, “This provision applies regardless of the form of indorsement or lack of indorsement. . . .” A check payable to a party and deposited in that party’s account makes the party the “owner” of the check under the UCC.  The bank is in  ________________________ of the check.

Many contracts contain a liqidated damages provision that wo…

Many contracts contain a liqidated damages provision that would use language like, “In the event either party breaches this agreement, the damages would only be $10,000.”  This prevents future ligation between the parties, but in no way can liqudated damages amount to a penalty.