Terry Has a Business in Which He Visits with Client's

Essay

Terry has a business in which he visits with client's pet cats in the client's home while the client is out of town.The primary purpose is to prevent the cats from becoming psychotic due to the owner's absence.Terry contracted to visit Valerie's cat daily for a 2-week period when Valerie was on vacation.Because Terry charged by the hour,Valerie gave Terry a signed check with the amount blank for Terry to fill in based on $10 per hour.While visiting with Valerie's cat,Terry noticed a check on Valerie's desk that had the amount of $100 filled in,but no payee and no signature.Terry took the check,converted the $100 to $1,000 and signed Valerie's name.Terry then filled out the check that Valerie had given him in the amount of $10,000,rather than the $200 he had earned at $10 per hour.Terry transferred both checks to a holder in due course,who later seeks payment from Valerie.How much must Valerie pay on each of these checks?