University Savings Ass'n v. Intercontinental Consolidated Companies

OPINION

JACK SMITH, Justice.

The primary issue in this case is whether a savings association has a legal right to stop payment on a “teller’s check,” and what the legal consequences are when payment of the “teller’s check” is stopped.

It is undisputed that Petrolife, Inc. and the appellee, Intercontinental Consolidated Companies, Inc., entered into a contract for the purchase of gasoline, but the date of delivery was contested. On November 7, 1986, Petrolife, which maintained a revolving credit account with University Savings Association (“University”), requested University to issue a check in…