Question
These are two questions from my homework. 1) B. Allen acquired an instrument from C. Baker for value. The instrument was indorsed in the form
These are two questions from my homework.
1) B. Allen acquired an instrument from C. Baker for value. The instrument was indorsed in the form "Pay to B. Allen or order, C. Baker." The instrument, which was executed by D. Carlton, stated: "I, D. Carlton, promise to pay to C. Baker $5,000 on March 10, 2020." When Carlton refused to make timely payment on the note to Allen, Allen sued Carlton. Carlton asserted certain defenses which could not successfully be used if Allen was a holder in due course. Was Allen a holder in due course? Discuss.
2) Edna Flatbush received a check for her professional services that was erroneously made payable to Edith Flatbush. Edna did not notice the mistake until she arrived at her bank. She immediately called the maker of the instrument and demanded that he provide a new check with her name spelled correctly. The maker was not willing to accommodate Edna unless she first returned the check she was holding. How can this apparent impasse be resolved most easily?
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