Common use of Wrongful Honor Clause in Contracts

Wrongful Honor. It will be wrongful honor by us if we honor: (a) a Suspect Item and we have received a timely Return Request Disposition Instruction for that item from you; or (b) a Suspect Item when no disposition instruction was received regarding the item and your Payment Default Option is “Return All.” If there is wrongful honor, we will be liable to you for the lesser of the amount of the wrongfully paid item or the actual damages you suffer from our payment of the item. However, if payment of the item discharges an indebtedness or obligation of yours and because of this you have no actual damages or reduced damages, then you agree that our liability to you is reduced to the same extent. Our liability may also be limited by other provisions of these Terms or this Agreement.

Wrongful Honor. It will be wrongful honor by us if we honor: (a) a Suspect an Exception Item and we have received a timely Return Request Disposition Instruction for that item Item from you; or (b) a Suspect an Exception Item when no disposition instruction Return Instruction was received regarding the item and your Payment Default Option is “Return All.” If there is wrongful honor, we will be liable to you for the lesser of the amount of the wrongfully paid item or the actual damages you suffer from our payment of the item. However, if payment of the item discharges an indebtedness or obligation of yours and because of this you have no actual damages or reduced damages, then you agree that our liability to you is reduced to the same extent. Our liability may also be limited by other provisions of these Terms or this Agreementthe DADS.