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Please provide legal basis in every case. Thank you. Case 1 M makes a promissory note payable to the order of P. P indorses the

Please provide legal basis in every case. Thank you.

Case 1

M makes a promissory note payable to the order of P. P indorses the note

specially to A, A indorses the note in blank and delivers the same to B. B specially

indorses the note to C, C specially indorses the note to D, D indorses the note in

blank and delivers it to E, E specifically indorses the note to H, holder. Whose

indorsement may H strike out?

Case 2

M makes a note payable to P or bearer and delivers the note to P. P indorses the

note to A. A keeps the note in his drawer but it is stolen by F who negotiates the

same to B by forging A's signature, B indorses the note to C, C indorses the note to H, a holder in due course. Who among the following can set up the defense of

forgery?

Case 3

At a movie premier, Perfecto Palmares approached Sharon Morales, the star of

the movie, and requested an autograph from her. Sharon Morales willingly obliged

and signed her name at the bottom right portion of a white 8" x 11" stationery which

Perfecto Palmares presented to her. Shortly after reaching home, Perfecto Palmares

printed above the signature of Sharon Morales through his computer the following: "I promise to pay Perfecto Palmares or his order P50,000.00". Thereafter, Perfecto

Palmares negotiated the paper to Arturo Alvarez, Arturo Alvarez to Bernardo Benitez, and Bernardo Benitez to Henry Hilado, holder. Alvarez, Benitez and Hilado knew

nothing about how the apparent note came into being. (F Soriano)

Question: Will Sharon Morales be held liable for the note?

If Henry Hilado is a holder in due course, can he collect from Sharon Morales?

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