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Unauthorized Signatures and Alterations

Learn about the rules surrounding forged signatures and unauthorized alterations of negotiable instruments.

Transcript

Negotiable instruments represent money or the obligation to pay it. And where there’s money, there’s misconduct. So, it should come as no surprise that we must discuss the implications of unauthorized signatures and alterations to negotiable instruments.  

I. Unauthorized Signature

Imagine that, after hosting a big party, a law student had a plumber come to her house to fix a clogged toilet. The plumber noticed that the law student left her checkbook on the counter and, when the law...

Lessons

1. Welcome
  • Welcome to Payment Systems
2. Negotiability
  • Introduction to Negotiable Instruments
  • Negotiability Requirements I
  • Negotiability Requirements II
  • Rule against Additional Terms
3. Key Terms in Article 3
  • Key Terms I
  • Key Terms II
  • Becoming a Holder
  • Negotiation
  • Indorsement
4. Enforcement of Negotiable Instruments
  • Holder in Due Course: Value and Good Faith
  • Holder in Due Course: Without Notice
  • Close-Connectedness Doctrine and Shelter Rule
  • Defenses against Enforcement
5. Liability on Negotiable Instruments
  • Obligations of the Parties
  • Instruments Taken for an Obligation
  • Accord and Satisfaction Using a Negotiable Instrument
  • Enforcement of Lost, Stolen, or Destroyed Instruments
  • Warranty Liability
6. Dishonor, Payment, and Discharge
  • Dishonor of Negotiable Instruments
  • Payment of Negotiable Instruments
  • Discharge of Liability
7. Misconduct and Mistake
  • Unauthorized Signatures and Alterations
  • The Negligence Rule
  • Imposters and Fictitious or Unintended Payees
  • Conversion of a Negotiable Instrument
8. Bank Deposits and Collections
  • Introduction to Article 4
  • Collection: Depositary and Collecting Banks
  • Collection: Payor Banks
  • Payor Bank’s Relationship to Its Customers