
Brandon owes Sadie $50.Brandon naively signs a blank check and tells Sadie to fill in the amount of $50.Sadie takes this opportunity to steal money from Brandon and fills the check in for $1000.Sadie then takes the check to the payor bank,cashes it,and is never heard from again.Which of the following is correct?
A) If the bank pays the check, it is liable for $950.This is an altered check, so Brandon is liable for the original tender of $50.
B) If the bank pays the check, it is not liable at all since Brandon bears the risk of loss for giving the signed, incomplete check to Sadie.The bank may be liable if it was on notice that the completion was improper.
C) If the bank pays the check, it is liable for $1000.
D) Brandon and the bank will share the loss; 50/50.
Correct Answer:
Verified
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