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Dan issues a check for $100. Eve steals it and alters the amount to $1,000. She negotiates the check to Fred, who takes it in good faith, for value, and without notice of the alteration. Dan refuses to pay more than $100 on the check. Is Fred entitled to more from Dan?
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Q2: Melvin executed and delivered to Dawkins a negotiable promissory to the order of Dawkins as payment for 100 bushels of wheat Dawkins had sold to Melvin. Dawkins indorsed the note “Pay to Hersey only, (signed) Dawkins” and sold it to Hersey. Hersey then sold the note to Smith after indorsing it “Pay to Smith, (signed) Hersey.” What rights, if any, does Smith acquire in the instrument?
