Kelly Wrote a Check to Trish, Which Trish Immediately Changed

question 5

Multiple Choice

Kelly wrote a check to Trish, which Trish immediately changed from $20 to $120. She negotiated the check to Carl for value, who in turn took it to Kelly's bank for certification. Kelly's bank checked her account and certified the check since there were sufficient funds to cover the check. Thereafter, Carl gave the check to General Motors as part of the down payment for his car. G.M. presents the check to Kelly's bank for payment and they discover the alteration. The bank:

• A) can sue G.M. for breach of presentment warranty of no alteration.
• B) can charge Carl's account for $120.
• C) can refuse to pay G.M. more than $20.
• D) must pay G.M. $120 and cannot sue them for breach of warranty.

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Definitions:

Voidable

A transaction or agreement that is legally valid but may be annulled or voided at the discretion of one of the parties involved.

Executory

Describing a contract or deed yet to be fully executed or performed, often depending on certain conditions being met.

Voluntary Agreement

A mutual consent or contract between parties, typically concerning legal obligations and enforcements.

Offer

A proposal presented by one party to another with the intention to enter into a legally binding contract upon acceptance.