Legal Question in Business Law in Texas

Re: Business payment cancellation

Maybe, but the flow of funds only tells part of the story. We would have to be told about the obligation for which the money was sent. Some kind of a sale of goods, I suppose, since you use the term "vendor." If the money was sent in payment or part payment for goods ordered, liability probably depends upon whether the payor had a contractual obligation to pay.

In other words, there is a substantial gap in your question, making it impossible (for me at least) to give you an answer.

If you re-ask the question as a law of sales question, or whatever it is, maybe it will be answerable. An answer from a Texas lawyer is to be preferred, although the law of sales, banking and commercial transactions is rather uniform among the states, and probably Canada as well.

Another thing that would help is to be consistent in terminology. I counted eight distinct terms used to identify the entities involved here, although I'd guess there really aren't more than three or four, including the bank: business; receiver; original company; payee; bank; vendor; Canadian company; and company that sent check originally. One simple way to tell a story like this is to label the parties as "X," "Y" and "Z."