Steve issues a 30-day negotiable promissory note, payable to the order of Henry, to cover the cost of Henry buying a car for Steve's racing operation. Steve signed the note, but the amount on the note is left blank. Henry has clear instructions that he is not to spend over $5,000 on the car. Tired of being Steve's lackey, Henry fills out the note for $10,000 and sells it to First Auto Bank for $9,500. The bank has no knowledge that the amount on the note was originally left blank or that the amount of the note was to be capped at $5,000. Thirty days later, the bank comes to Steve wanting $10,000. As the bank manager, what is your argument to Steve to collect on the note.
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Home » Business » Steve issues a 30-day negotiable promissory note, payable to the order of Henry, to cover the cost of Henry buying a car for Steve's racing operation. Steve signed the note, but the amount on the note is left blank.