A prepares and signs a promissory note,but leaves the amount blank.The note is subsequently stolen by B,who fills in the amount and negotiates it to C.C now looks for payment from A,who refuses.If C sues A
A)A will successfully defend the lawsuit on the basis of lack of delivery of an incomplete instrument.
B)A will be liable to C because C is now the payee of the note.
C)A will successfully defend the lawsuit on the basis of lack of capacity.
D)A will successfully defend C's lawsuit on the basis that B committed a fraud.
E)A will be liable to C because C is a holder in due course.

Question

Quizplus · Accepted Answer

A promissory note must be delivered to be considered valid. In this case, the note was not delivered with a completed amount, making it incomplete. Therefore, A can successfully defend the lawsuit on the basis of lack of delivery of an incomplete instrument.

A Prepares and Signs a Promissory Note,but Leaves the Amount