Jennifer signs a promissory note to pay $2,500 to Clara.Clara negotiates the instrument and indorses it to Anthony.Anthony alters the note to make the payment amount $25,000 and negotiates the note to Nicholas.Nicholas indorses the note and negotiates it to Mack.Nicholas and Mack are both unaware of the alteration done by Anthony.If Mack presents the note to Jennifer for payment,how much,if anything is Jennifer obligated to pay?

Question

Quizplus · Accepted Answer

Jennifer is only obligated to pay the original amount of $2,500 that she agreed to in the promissory note. Any alteration made to the note after Jennifer signed it would be considered fraudulent and not enforceable by law. Therefore, Jennifer is not obligated to pay the altered amount of $25,000 or any other amount that exceeds the original agreement.

Jennifer Signs a Promissory Note to Pay $2,500 to Clara