Schaffhausen, the maker, issued a promissory note to Zug, the payee which states: "I, Schaffhausen, promise to pay Zug or order the amount of Php8 Million. Signed, Schaffhausen." Zug negotiated the note by indorsement to Jura, then Jura to Geneva also by indorsement, and Geneva to Thurgau, again by indorsement. But before Geneva indorsed the note to Thurgau, Geneva's husband wrote the figure "1" on the note before "Php8" without Geneva's knowledge, making it appear that the note is for Php18 Million. For how much is Geneva liable to Thurgau?
Schaffhausen, the maker, issued a promissory note to Zug, the payee which states: "I, Schaffhausen, promise to pay Zug or order the amount of Php8 Million. Signed, Schaffhausen." Zug negotiated the note by indorsement to Jura, then Jura to Geneva also by indorsement, and Geneva to Thurgau, again by indorsement. But before Geneva indorsed the note to Thurgau, Geneva's husband wrote the figure "1" on the note before "Php8" without Geneva's knowledge, making it appear that the note is for Php18 Million. For how much is Geneva liable to Thurgau?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Schaffhausen, the maker, issued a promissory note to Zug, the payee which states: "I, Schaffhausen, promise to pay Zug or order the amount of Php8 Million. Signed, Schaffhausen." Zug negotiated the note by indorsement to Jura, then Jura to Geneva also by indorsement, and Geneva to Thurgau, again by indorsement. But before Geneva indorsed the note to Thurgau, Geneva's husband wrote the figure "1" on the note before "Php8" without Geneva's knowledge, making it appear that the note is for Php18 Million. For how much is Geneva liable to Thurgau?
a. Php8 Million since it is the original tenor of the note.
b. Php8 Million since he warrants that the note is genuine and in all respects what it purports to be.
c. Php18 Million since he warrants that the note is genuine and in all respects what it purports to be.
d. Php18 Million since he warrants his solvency and that he has a good title to the note.
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