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Erika issued a negotiable promissory note and authorized Max to fill up the amount in blank up to P50,000 only. However, Max filled it up to P75,000 and negotiated the note to Warren, a holder in due course.
Which of the following is false?
A. Erika is liable only to Warren up to P50,000.
B. If Erika dishonors the note, Max is liable to Warren for the full amount of the note.
C. If the note is presented to Erika, she is liable to Warren for P75,000.
D. Both Erika and Max can be held liable for the full amount of the note.
Erika issued a negotiable promissory note and authorized Max to fill up the amount in blank up to P50,000 only. However, Max filled it up to P75,000 and negotiated the note to Warren, a holder in due course.
Which of the following is false?
A. Erika is liable only to Warren up to P50,000.
B. If Erika dishonors the note, Max is liable to Warren for the full amount of the note.
C. If the note is presented to Erika, she is liable to Warren for P75,000.
D. Both Erika and Max can be held liable for the full amount of the note.
