Suzy Asks Joe to Fix Her Computer While She Is

question 19

Essay

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?

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Definitions:

Negotiability

The quality of a document, particularly a financial instrument, that allows it to be transferred or assigned freely from one party to another.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check or a bond, and has the right to collect the value of the instrument.

Payable

Describes an amount of money that is owed and should be paid, often within a specified period.

Bearer

Refers to an individual or entity in possession of a negotiable instrument, such as a check or bond, that is payable to whoever holds it.