Question
Martha had an engagement party at her apartment that was catered by Sam's Cuisine and because Martha was a little short of funds, she requested
Martha had an engagement party at her apartment that was catered by Sam's Cuisine and because Martha was a little short of funds, she requested a few days to pay off the balance of
$100.Sam agreed and related she would come by and collect the balance in a few days. Several days later, Alissa appeared at Martha's apartment and requested the balance. Martha handed her a check for $ 100 payable to Sam's Cuisine.Later, Alissa changed the amount of the check to $ 1,000 and negotiated it to Pat who took in good faith and without notice in exchange for various designer handbags. When Pat inquired as to why Alissa's had a check payable to "Sam's Cuisine", Alissa explained it was a bonus from her boss. Still later, Pat negotiated the check to Janice in satisfaction of a debt and with the endorsement: "Pay to Janice. Without Recourse. Pat." Janice deposited the check in her account at Bank of America and it was sent on for collection to TR Bank and paid. When Sam showed up at Martha's apartment and demanded payment, Martha insisted "I previously paid..."Sam insisted no one had authority to collect monies owed to her business except her. When Martha contacted her bank, she learned a check payable to "Sam's Cuisine" had been presented for payment for $ 1,000 and paid.
Martha consults you about her rights and the rights of all parties.Discuss fully.
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