Brian signs a promissory note for $500 payable to Harwich. Harwich indorses the note "Pay to the order of Stephen, Harwich" and negotiates it to Stephen. Stephen fraudulently changes the $500 to $5000. Under these circumstances, Brian is discharged from his liability as maker of note because:

Question

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Brian is discharged from liability because the amount for which he was liable was altered, which is a material alteration. A material alteration discharges the original party who signed the instrument from their liability.

Brian Signs a Promissory Note for $500 Payable to Harwich