Question

Clint wrote a check to pay for his phone bill. The amount of the bill was $50. He wrote out the words "Fifty dollars only" but he also wrote "$60" in the area for numbers. As a result, the check:

qualifies as a negotiable instrument, and the payee can collect $60.

is disqualified as a negotiable instrument.

qualifies as a negotiable instrument, and the payee can collect $50.

is disqualified as a negotiable instrument, unless Clint's intent is ascertained.

Answer 1

Correct answer:

Option (4) or check is disqualified as a negotiable instrument, unless Clint's intent is ascertained because writting the different amount in numbers and different amount in words will not clear the payment of check. The fIgure amount is not maching with amount written in words. So it is difficult to decide which amount should be considered. here Clint's intention is not clear about writting the different amount in words and in figure.

Incorrect answer:

Option(1) or check qualifies as a negotiable instrument, and the payee can collect $60 is incorrect answer because writting the different amount in numbers and different amount in words is disqualified as a negotiable instrument, unless Clint's intent is ascertained.

Option(2) or check is disqualified as a negotiable instrument because it is not clear about intension behind the writting the different amount in numbers and different amount in words, so it is disqualified as a negotiable instrument, unless Clint's intent is ascertained.

Option(3) or check qualifies as a negotiable instrument, and the payee can collect $50 is incorrect answer because check is disqualified as a negotiable instrument, unless Clint's intent is ascertained.

So correct answer is option (4)