Asked by
Ashley Middleton
on Dec 19, 2024
Verified
At 1 A.M., in front of EZ Credit Corporation, which is closed, Frey buys a $500 promissory note for $50 from Greco. When presented with Frey's demand for payment, Diaz, the maker of the note, could successfully claim that Frey
A) acquired the note with notice that it was overdue.
B) did not acquire the instrument in good faith.
C) did not give value for the instrument.
D) none of the choices.
Good Faith
A principle that implies honesty and sincerity of intention in the fulfillment of one's duties or negotiation.
Promissory Note
A financial instrument indicating a written promise by one party to pay a definite sum of money to another party under agreed terms.
Notice
A formal communication or announcement given to someone to make them aware of something or to officially inform them of a decision or legal requirement.
- Examine the function of trustworthiness and monetary value in operations involving negotiable papers.
- Explore the legal consequences of acquiring negotiable instruments under suspicious circumstances.
Verified Answer
EC
Learning Objectives
- Examine the function of trustworthiness and monetary value in operations involving negotiable papers.
- Explore the legal consequences of acquiring negotiable instruments under suspicious circumstances.