Manufacturer Co. purchased steel rods from Metals Inc. and paid with a promissory Metals Inc. transferred the promissory note to its landlord, Trump Properties, in satisfaction of rent owed. The steel rods were defective and Manufacturer Co. does not want to pay for them. Trump Properties presents the promissory note for payment to Manufacturer Co. Does Manufacturer Co have to pay?

No. This would be a breach of a condition under the Sale of Goods Act (Ontario) and Manufacturer Co. is entitled to rescission

Not the defective rods were a fundamental breach, Manufacturer Co. is entitled to rescind the contract, and is not required to pay

Yes Once signed, the promissory note has to be honoured

Yes Provided Trump Properties had no notice of the problems, it is a holder in due course and is entitled to be paid