Negotiable Instruments: Negotiability and

Transferability$-$But What If$...$

Ed recently bought organically grown vegetables from Rango, an organic farmer. Ed provided Rango with a draft for the sum of money Rango demanded. Rango then used that draft to buy vegetable seeds from Mary. When Mary sought to claim her payment from Ed$,$ Ed refused, claiming that Rango had sold him a batch of rotten vegetables. Mary sued Ed for breach of contract. After listening to all of the evidence presented by both sides, the court decided that Ed would be obligated to pay Mary, regardless of the quality of vegetables, if the draft met all of the requirements for negotiability. Although an instrument being negotiable is not sufficient to determine that it is enforceable, in this instance, the court assumed that such is the case. The court ruled in favor of Mary, and Ed was ordered to make the payment noted in the draft, as well as pay for Mary's court fees.

But what if the facts of the case were different? Select each set of facts below that could change the outcome of the case.