Asked by Corey Hugenberg on Apr 25, 2024
Verified
A demand negotiable note for $500 issued by Sabin and given to Norm is altered to read $5,000 and subsequently presented for payment by Bridget,a holder in due course.Discuss the case.
Demand Negotiable Note
A written, unconditional promise to pay a certain amount of money upon demand to the bearer or at a specified time.
Altered to Read
The modification or editing of text or documents such that the content is changed to convey a different message or information.
Holder in Due Course
A holder in due course is a party in possession of a negotiable instrument, such as a check, who has taken it under certain conditions, protecting them from prior claims and defenses.
- Implement the principles of deceit and modification in transferable documents and analyze their effects on the privileges of bona fide holders.
- Examine the legal consequences of modifying negotiable instruments and explore the available defenses.
Verified Answer
DS
dominic steinel7 days ago
Final Answer :
Sabin must pay only the amount for which the instrument was originally written.However,Sabin will liable to pay $5,000 if Sabin is found to have written the note negligently,so that it could have been easily altered.In such a case,Sabin cannot assert the real defense of alternation.
Learning Objectives
- Implement the principles of deceit and modification in transferable documents and analyze their effects on the privileges of bona fide holders.
- Examine the legal consequences of modifying negotiable instruments and explore the available defenses.