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A bank holds two promissory notes, Note A has 5,000 balence and note B has a 10,000 balence owed. The debtor on both notes pays 7,000 and a clerk in bank sends back both notes marked '' paid'' by mistake with a letter thanking customer. Six months later the bank demands the 8,000 balence on Note B and the debtor produces the ''paid'' notes. The bank proves the clerk was not a bank officer and had no authority to cancel notes. The debtor admits only 7,000 was paid, but still claims both notes were cancelled.
a) Was note cancelled? Why/Why not?
b) Will Bank get 8,000? Why/Why not?
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