Exam 21: Holder in Due Course and Liability of Parties

Gary asks his friend,Adam,to look after his house while he goes to another country for work,for two years.Adam leases the house to Brad by signing a contract with Brad.Adam signs as a representative of Gary even though he does not have the right to do so.Gary comes back and attempts to evict Brad.Brad can claim the defense of ________.

Under which of the following UCC requirements is a holder considered a "holder in due process," given that the holder performs the agreed-upon promise in a negotiable instrument?

Warranty liability is imposed whether or not the transferor signed the instrument.

Which of the following is a universal defense?

In which of the following conditions is a drawee primarily liable to a draft?

Drawers of checks and drafts and unqualified indorsers of negotiable instruments have ________ on the instruments.

________ is a type of personal defense where a wrongdoer makes a False statement or misrepresentation to another person to lead that person to enter into a contract with the wrongdoer.

What is transfer of an instrument?

Cameron,a purported agent,signs a contract and promissory note to purchase a building for Burnstar Constructions,a purported principal.Though Cameron is an unauthorized representative,Burnstar Constructions likes the deal and accepts it.Which of the following is true of the deal ratified by Burnstar Constructions?

Material alteration,extreme duress,forgery,and mental incapacity are examples of personal defenses.

Diana borrows $10,000 from Thomas and signs a promissory note,promising to pay Thomas this amount plus 10 percent interest in one year.Thomas indorses the note and negotiates it to Frank.Frank indorses the note and negotiates it to Lila.Lila presents the note to Diana for payment when the note is due.Diana refuses to pay the note.How can each person recover the money?

The holder of a negotiable instrument can discharge the liability of any party to the instrument by ________.

Ellen draws a check on his checking account at Center Bank "payable to the order of Cary Gardner." When Cary presents the check for payment,Center Bank refuses to pay it even though there are sufficient funds in Ellen's account to pay Cary.Can Cary collect the amount of the check? If yes,how?

Explain with an example how a holder who does not qualify as a holder in due course in his or her own right becomes a holder in due course.

An unauthorized signature by a purported agent acts as the signature of the purported principal.

A person who takes a negotiable instrument for value,in good faith,and without notice that it is defective or overdue is referred to as a(n)________.

Under the UCC,value is given if the holder ________.

Give an example of a situation where a universal defense can be raised against an HDC.

Which of the following qualifications renders a person as a holder in due course of a negotiable instrument?

Every party that signs a negotiable instrument is primarily liable on the instrument.