Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On September 1 st , Alan sells Barbara a Picasso sketch. Barbara signs a promissory note payable to Alan for $300,000 on November 1st. However,

On September 1st, Alan sells Barbara a Picasso sketch. Barbara signs a promissory note payable to Alan for $300,000 on November 1st. However, Alan knows that the sketch is a reproduction, not an original. Alan then sells the promissory note to Clarissa for $250,000 on October 1st. Clarissa does not know that the sketch is not an original. On October 2nd, Clarissa gives the note to her husband Donald for his birthday. Donald is friends with Alan and knows that the sketch is a reproduction.

1. Is Donald technically a holder in due course? Why or why not?

2. Is Donald entitled to collect on the note from Barbara and, if so, how much? Explain your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Binary Options Trading Techniques For Accurate Price Direction

Authors: Emegha Omoruyi Emmanuel

1st Edition

1500547271, 978-1500547271

More Books

Students also viewed these Finance questions