26. Mr. Smith steals your checkbook and writes out checks to himself for $20,000. Mr. Jones gets a check from you for ten dollars and changes the amount to $10,000. You write a check to Mr. Meyer for $5,000. Mr. Meyer indorses the check and give it to Mr. Jones as payment for rent. Mr. Jones and Mr. Smith try to the checks in their possession. Are any of these checks valid and why?

Question

Business

Abigail Henson

21 June, 18:48

26. Mr. Smith steals your checkbook and writes out checks to himself for $20,000. Mr. Jones gets a check from you for ten dollars and changes the amount to $10,000. You write a check to Mr. Meyer for $5,000. Mr. Meyer indorses the check and give it to Mr. Jones as payment for rent. Mr. Jones and Mr. Smith try to the checks in their possession. Are any of these checks valid and why?

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Answers (1)

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Amiya West · Answer 1

Only one check in given case is valid. Following check is valid;

"You write a check to Mr. Meyer for $5,000. Mr. Meyer indorses the check and give it to Mr. Jones as payment for rent."

Explanation:

As we know that check can be indorsed to other person also hence in given case it is possible that Mr. Meyer can indorse the check to Mr. Jones. Thus it is clear that it is a valid check.

After stealing a check book we can not write a valid check because it requires signature of the real owner of check book, hence it will not be a valid check.

If we change amont of check then it will not be a valid check because correction is not allowed in normal case on the check. If any correction is made then corrections should be clearly signed by the valid owner of check book but it is not possible because we are changing amount of check without informing real owner of check book. Hence it will not be a valid check.