PROBLEM 1: Y loaned X some money and, to evidence his indebtedness, X executed and delivered to Y a promissory note payable to his order. Y endorsed the note to P. F fraudulently obtained the note from P and endorsed it to Z by forging P's signature.

1. Against whom can Z have the right of recourse? Explain.

2. May P recover from X? Why or why not?

3. May P recover from Y? Why or why not?

PROBLEM 2: A delivered it to B who negotiated it to C. C indorsed the noted to D who is 16 years old. D indorsed it to E who later on indorsed it to F, the holder. F presented the note to A, who dishonoured the instrument.

1. Identify all the parties in the problem given.

2. Can F hold all the indorsers liable? Why or why not? Explain.

3. Is F a holder in due course? Why or why not? Explain.