Unauthorized completion refers to the act of adding information to a negotiable instrument, such as a check or promissory note, without the proper authority. This can occur when someone fills in missing details that they are not authorized to complete. Such actions can lead to disputes regarding the validity of the instrument.
This term is primarily used in commercial law, particularly in cases involving negotiable instruments. It is relevant in civil law contexts where disputes arise over the validity of financial documents. Users may encounter this issue when dealing with checks, promissory notes, or other financial agreements. Legal templates from US Legal Forms can assist in drafting or reviewing these documents to ensure compliance with legal standards.
Here are a couple of examples of abatement:
Example 1: A person finds a blank check and fills in their name and an amount without the owner's permission. This act constitutes unauthorized completion.
Example 2: A business employee mistakenly adds an unauthorized amount to a company check, which can lead to disputes about the payment's validity. (hypothetical example)
| State | Key Differences |
|---|---|
| California | Strong consumer protection laws may affect unauthorized completion claims. |
| New York | Specific provisions under the Uniform Commercial Code (UCC) apply to negotiable instruments. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Material Alteration | Changes made to a document that affect its legal rights. | Unauthorized completion specifically refers to filling in missing information, while material alteration can involve any changes. |
| Holder in Due Course | A party who acquires a negotiable instrument in good faith. | A holder in due course may have rights that are affected by unauthorized completion. |
If you suspect unauthorized completion of a negotiable instrument, consider the following steps:
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It is the act of filling in missing information on a negotiable instrument without proper authority.