1. Grove Hotel hired Fortas, an electrical contractor, and paid him with a promissory note for $ 3,400. The note stated that it was “with interest at prevailing bank rates.” Did the stipulation about interest rates affect the negotiability of the note?
2. Graver gave Srau a postdated check for $ 2,000 as a deposit on a sailboat as acceptance of Srau’s offer to sell the boat. Later, after Srau sold the boat to someone else, he claimed that the check was not really part of a binding contract because it was postdated, and thus created a qualified acceptance. Did postdating the check affect its negotiability?
3. Higgins was a used car dealer. He purchased a Corvette, giving the seller a draft drawn by him on the First State Bank of Albertville in the amount of $ 8,115. This draft was later presented by the seller to the bank for payment. Meanwhile, Higgins sold the car to Holsonback, who paid with a draft on the Albertville National Bank in the amount of $ 8,225. When the Albertville National Bank requested Holsonback to pay the draft, he refused, claiming that there was a problem with the certificate of title. The issue was raised as to whether, under the Uniform Commercial Code, negotiable instruments can be issued conditionally. Did Holsonback have the right to withhold payment on the draft because of the problem with the certificate of title?
4. After Balkus died intestate, included among Balkus’s possessions were bank deposit slips for a savings account owned by him. On each deposit slip was a handwritten notation, “Payable to Ann Balkus Vesley [Balkus’s sister] on P.O.D. the full amount and other deposits.” Each slip was dated and signed by Balkus. His sister claimed that she was entitled to the money because “ P. O. D.” meant “ payable on death”; the deposits were negotiable instruments; and she was a holder in due course. Are the deposit slips negotiable instruments under the Uniform Commercial Code?

  • CreatedOctober 01, 2015
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