A signs his name on a blank stamp paper and gives it to B with the authority to fill it up as a promissory note for Rs.400. fraudulently, B fills up the paper for Rs.1000. the denomination of the stamp paper is sufficient to cover this amount. B then hands it to C who takes it in good faith for value. Can C recover the whole amount from A?
2006-09-29 19:44:49 · 8 answers · asked by sushil g 1 in Business & Finance ➔ Credit
yep. A is responsible for fulfilling the debt. "A" is very stupid for ever signing a blank paper in the first place, hopefully "A" will learn a very hard but valuable lesson and not sign like that again.
2006-09-29 19:49:48 · answer #1 · answered by Linda 3 · 2⤊ 0⤋
Yup, because A was an idiot for signing a blank paper!
2006-09-29 19:54:55 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
absolutely, the person who signed the paper is responsible--nobody in their right mind would sign such a paper--someone who is a little off might do it , though
2006-09-29 19:55:04 · answer #3 · answered by lil'rusty 3 · 1⤊ 0⤋
Yes, unless A can prove it was fraudulent.
2006-09-29 19:48:01 · answer #4 · answered by vinny_the_hack 5 · 2⤊ 0⤋
Never, never, never sign a blank paper.......unless you enjoy being screwed.
2006-09-30 05:02:10 · answer #5 · answered by Kate 3 · 0⤊ 0⤋
You have the right to remain stupid.....
Why in the world would you sign a blank check????
2006-09-30 09:41:14 · answer #6 · answered by Anonymous · 1⤊ 3⤋
Yes, but I hope this is just theoretical.
2006-09-29 19:55:35 · answer #7 · answered by saturn 7 · 0⤊ 0⤋
WHY would A do that? A must have wanted B to misbehave!
2006-09-30 12:00:45 · answer #8 · answered by Not Laughing w/ U 3 · 0⤊ 2⤋