Question: Marion makes a promissory note payable to the order of Perry. Perry indorses the note by writing without recourse, Perry and transfers the note for

Marion makes a promissory note payable to the order of Perry. Perry indorses the note by writing “without recourse, Perry” and transfers the note for value to Steven. Steven, in need of cash, negotiates the note to Harriet by indorsing it with the words “Pay to Harriet, [signed] Steven.” On the due date, Harriet presents the note to Marion for payment, only to learn that Marion has filed for bankruptcy and will have all debts (including the note) discharged in bankruptcy. Discuss fully whether Harriet can hold Marion, Perry, or Steven liable on the note.

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Harriet qualifies as an HDC She gave value took in good faith and was without notice that the note was overdue had been dishonored was part of a serie... View full answer

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