Asked by Abena Opoku on Jun 06, 2024
Verified
Suzy asks Joe to fix her computer while she is on vacation.Because she does not know how much the job will cost,she gives Joe a signed blank check with Joe as the payee.Joe,of course,is supposed to fill in the correct amount and cash the check at Suzy's bank.The job cost $200,but Joe filled out the check for $10,000 and then negotiates it to Harry.Harry takes the check in good faith,for value,and without notice of the false addition.Assuming that Suzy's bank does not pay Harry and Harry pursues her on her secondary liability,does Suzy have an alteration defense against Harry?
Blank Check
A check signed by the drawer with the amount left blank, allowing the payee to enter any amount.
- Gain an understanding of the procedures and ramifications involved in alteration and forgery of negotiable instruments.
- Acquire knowledge on the conditions and effects of indorsement and negotiation relevant to transfers and liabilities.
Verified Answer
AR
Anahi RiveraJun 10, 2024
Final Answer :
No.According to UCC section 3-407(c),a person who takes an instrument in good faith,for value,and without notice of an alteration may enforce the instrument as altered in the case of an incomplete instrument later altered by an unauthorized completion.
Learning Objectives
- Gain an understanding of the procedures and ramifications involved in alteration and forgery of negotiable instruments.
- Acquire knowledge on the conditions and effects of indorsement and negotiation relevant to transfers and liabilities.
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