Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Andrews owed Martin, his accountant, a fee for services rendered.Andrews drew a check on his bank payable to Cash and signed it.He left the amount

  1. Andrews owed Martin, his accountant, a fee for services rendered.Andrews drew a check on his bank payable to "Cash" and signed it.He left the amount blank because he was not sure of the exact amount owed.On his way to Martin's office, Andrews lost the check.Oliver found the check, filled it in for $500, and handed it to Ernest to satisfy a $500 debt that Oliver owed to Ernest.Ernest accepted the check in good faith as payment for the debt and immediately presented it to the drawee bank.The drawee bank refused to cash it because of a stop payment order.

a.Is Andrews liable to Ernest for the $500?Fully explain.

b.Would your answer be the same in the problem above if Andrews had made the original check payable to Martin and Oliver had signed Martin's name prior to going to see Ernest, all other facts being the same?Fully explain your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Family Law

Authors: Jonathan Herring

10th Edition

1292343257, 978-1292343259

More Books

Students also viewed these Law questions

Question

=+b) Is the trend term statistically significant?

Answered: 1 week ago