On December 2, 2010, Miles executed and delivered to Proctor a negotiable promissory note for $10,000, payable

Question:

On December 2, 2010, Miles executed and delivered to Proctor a negotiable promissory note for $10,000, payable to Proctor or order, due March 2, 2011, with interest at 6 percent from maturity, in partial payment of a printing press. On January 3, 2011, Proctor, in need of ready cash, indorsed and sold the note to Hughes for $8,000. Hughes paid $6,000 in cash to Proctor on January 3 and agreed to pay the balance of $2,000 one week later, namely, on January 10. On January 6, Hughes learned that Miles claimed a breach of warranty by Proctor and, for this reason, intended to refuse to pay the note when it matured. On January 10, Hughes paid Proctor $2,000, in conformity with their agreement of January 3. Following Miles’s refusal to pay the note on March 2, 2011, Hughes sues Miles for $10,000. Is Hughes a holder in due course? If so, for what amount?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

Question Posted: