Question
Erin wrote a check to Kristen for $5,000 in payment for a car which Kristen sold to Erin.Kristen properly indorsed and transferred the check to
Erin wrote a check to Kristen for $5,000 in payment for a car which Kristen sold to Erin.Kristen properly indorsed and transferred the check to Larry, a holder in due course who then properly indorsed and transferred the check to Sarah, who was aware that the car had been sold to Erin was not in good mechanical condition and Erin had sued Kristen for breach of contract.Sarah, who claimed that she was a holder in due course, demanded payment on the check from Erin.Erin said that Sarah was not a holder in due course and as a mere holder, she did not have to pay Sarah.Is Erin right or wrong?
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