Asked by
Carlo Corpuz
on Nov 28, 2024
Verified
Development Corporation obtains a business loan from Equity LLC in exchange for a note signed by the borrower. Equity alters the amount due on the note before selling it to Finance Inc., which takes it in good faith, and in turn sells it to Grande Invest Company. Grande can sue for breach of a warranty on the note
A) none of the choices.
B) when payment of the note becomes due.
C) only if Finance Inc. had reason to suspect the breach.
D) as soon as Grande has reason to know of the breach.
Breach of a Warranty
The failure to fulfill the terms of a promise or guarantee given regarding the quality or duration of a product or service.
Alters
To change or modify something, which can refer to physical alterations, adjustments in plans or behaviors, or amendments in documents.
Business Loan
A loan specifically intended for business purposes, including start-up, expansion, or operational needs.
- Determine the liability and defenses available to parties in a transaction involving materially altered instruments.
Verified Answer
DB
Learning Objectives
- Determine the liability and defenses available to parties in a transaction involving materially altered instruments.