Question
Site legal basis to support the answer: 1. In payment for the purchase of a Rodeo cow in Masbate, Ramon drew and issued on June
Site legal basis to support the answer: 1. In payment for the purchase of a Rodeo cow in Masbate, Ramon drew and issued on June 01, 2021 a Metrobank crossed-check payable in the name "CASH" postdated to June 15, 2021. Then he handed it to seller "Rose Gomez" thereafter. Prior to due date, Rose remembered having a loan to Peter for the same amount so she made a special indorsement of the check and delivered the same to "Peter". On the actual due date however, Peter remembered his long overdue debt to Amanda, hence much to his regrets, Peter likewise made a special indorsement thereof and delivered the same check to his fellow creditor "Amanda" to whom he is likewise indebted for the same amount. However, when Amanda received the check from Peter, the latter is aware that she is actually on the state of her lucid interval.QUESTION: Which of the following is a correct analogy? a) The instrument is valid; however, the mode of transfer thereof and the transfer itself thereof to Amanda are both invalid and ineffective;
b) The instrument is valid; likewise, the mode of transfer thereof and the transfer itself thereof to Amanda are both valid and effective;
c) The instrument is invalid; likewise, the mode of transfer thereof and the transfer itself thereof to Amanda are both invalid and ineffective;
d) The instrument is invalid; however, the mode of transfer thereof and the transfer itself thereof to Amanda are both valid and effective;
e) The instrument is valid and Amanda is legally capacitated to become its transferee; however, the mode of transfer thereof to Amanda is invalid. Consequently, Amanda did not qualify as a holder in due course. 2. As a return of her investment, businessman X drew and issued in the name of Mylene a BPI check dated July 30, 2021 valued at $US1,000.00. The said check was drawn by X against his Dollar Account at BPI which at the time of issuance contains just exactly its maintaining balance of $US1,000.00. On the declared due date however, Mylene indorsed and delivered the check as payment to Jack, a 17-year-old trader of Class C luxury bags, to forge and start-up her own online business. QUESTION: If the check was dishonored by the bank, which of the following is a correct analogy? a) Jack can enforce the instrument against all parties concerned because he possesses all the rights of a holder-in-due-course;
b) Jack cannot enforce the instrument against all parties concerned because aside from the fact that the issued check is invalid from the start, it is also non-negotiable and the transfer thereof to him is likewise invalid;
c) Jack cannot enforce the instrument against all parties concerned because although the check is valid from the start, but he is a minor and he has no legal capacity to contract under the law;
d) Jack cannot enforce the instrument against all parties concerned because although the check is valid from the start, but he does not qualify as a holder-in-due-course and he cannot exercise its rights under the law;
e) Both C and D.
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