Book Opener

The Opening SceneDavid Mueller arrives home from work and greetshis wife, Melanie.Checks and BalancesDAVID: (Handing his wife an envelope.) Here it is,Melanie, my first paycheck since I got the new job.I can’t wait to cash it.MELANIE: We’ve waited a long time. (She readsaloud the words on the check.) Pay to the orderof David Mueller. That’s odd—the words say fourhundred twelve dollars, but the figures say $422.I wonder which amount is right?DAVID: (Taking the check.) Oh, you’re right. Look!There’s no date on the check, either. I hope it’sstill good.MELANIE: It better be, after all your hard work. Wereally need the money. We have a lot of bills. Iguess that you could always ask your boss foranother check, though.DAVID: I wish we could pay the furniture company,but we have so many other bills. We’ve got tomake a payment on the credit card, too. Whatshould we do?MELANIE: It would be great if Julio would pay you themoney he owes you. It should be almost due, right?I remember that we were making our weddingplans when you loaned him the money. That wasabout a year ago.DAVID: You’re right. Let’s look at the promissory notehe gave me. (David leaves the room and returnswith a piece of paper.) The whole thing is in hishandwriting. It says, “One year from date, I, JulioRueda, promise to pay to the order of DavidMueller the sum of $1,000 with interest at therate of 8 percent per annum.” It’s not due foranother month. Say, I just noticed he never signedon the bottom. Maybe this is no good! Now I’mreally worried!MELANIE: Don’t worry. He wrote his name at thebeginning, right? Anyway, I’d trust him even if hedidn’t put it in writing. Julio is our friend, and hewouldn’t let us down. Maybe we should call himand remind him of the debt.DAVID: I think I might give him a call. This amountis the same amount that we owe the furniturecompany. Wouldn’t it be great if Julio could signa paper to pay the money directly to the furniturecompany? That way, I wouldn’t have the chanceto blow the money.MELANIE: Maybe he can. I’m going to ask him todo it. The furniture company shouldn’t care wherethe money comes from. We should really lookinto that.DAVID: I think I’ll write out a few checks right now. Ican mail them on the way to work early tomorrowmorning.MELANIE: I think you’re being hasty. Shouldn’t youdeposit your paycheck first? We don’t want tobounce any checks!DAVID: I’ll just postdate the checks a few days. Thatway they won’t be able to cash them until mypaycheck clears.1. What sum controls on a check when the amountwritten in words is different from the amountwritten in figures?2. Is an undated check valid and negotiable?3. What is the legal effect of a signature writtenat the beginning of an instrument instead of atthe end?4. Is there a type of negotiable instrument thatcan be used to transfer debts?5. Is it legal to postdate a check?Chapter 23: Negotiable Instruments 505