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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.
On Sep 23, 2024
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.