Chapter 19 - different amounts on the check Using a...

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Question #1 A college student, Maynard Keynes, signed a promissory note to pay to Friedman Electronics during the next six months. A promissory note is a written promise made by one person (maker) to another (payee). Thus, Maynard Keynes is the maker, and Friedman Electronics is the payee. One week later Friedman Electronics signed the back of the note and sold it to the First National Bank of Halston. In our case the First National Bank of Halston is the bearer. Any instrument containing term such as “Payable to the order of” is the bearer instrument. An independent person may transfer the instrument to whomever he or she wishes. Thus, a maker is agreeing to pay either a person specified or whomever that person might designate. The instrument is transferable if it states, “Payable to the order of”. In our case the note is transferable because it stats: “promise to pay to Friedman Electronics or its order.” Question #5 Eugene Kindy issued a check to Tony Hicks for four diesel engines. Kindy placed two
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Unformatted text preview: different amounts on the check. Using a check-imprinting machine, he imprinted $5,500 on the check in space where the dollar amount is normally written, but he wrote $6,500 in figures in the box usually reserved for numbers. The seller’s bank ‘s employee noticed the discrepancy, altered the figures and accepted the check. However, later the check was requested back by the buyer and returned by the seller’s bank, as the parts weren’t delivered. When numerical amount on the check is different from the written amount, then the word outweigh figures unless the words are ambiguous. If the Court would base their decision according to this rule, then $5,500 should be paid for this check. In our case numerical amount was located in the place used for words. This amount conflicted with the amount located in the place used for figures. On the other hand Court may find the typed amount of $6,500 controlling despite the fact it was not expressed in words....
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This note was uploaded on 03/11/2011 for the course ACC 101 taught by Professor Corolinsky during the Spring '11 term at SUNY Albany.

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