Tom wrote a check to Mary for $10.Tom was careful and not negligent in the way he wrote the check.Nevertheless,Mary cleverly altered the check to read $1,000.Tom's bank cashed this check and deducted that amount from his account.Which of the following is correct?
A)Tom is liable on this check,but only for $10.
B)Tom is liable on this check for $1,000.
C)Tom is liable on this check for nothing.
D)Tom must reimburse the bank for any losses it suffers related to this check.

Question

Quizplus · Accepted Answer

If the alteration is obvious,the bank should note that fact and refuse to pay the check when it is presented for payment.Occasionally,the alteration is so skillful that the bank cannot detect it.In that case,the bank is allowed to charge to the account the amount for which the check originally was written.

Tom Wrote a Check to Mary for $10