Locke gave a promissory note to Consumer Foods, Inc. The note read, in part, Buyer agrees

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Locke gave a promissory note to Consumer Foods, Inc. The note read, in part, “ Buyer agrees to pay to Seller.” Consumer Foods assigned the note to Aetna Acceptance Corporation. When the note wasn’t paid and Aetna brought an action against Locke, Locke’s defense was that the note was not negotiable because it was not payable to order or to bearer. As a result, Aetna was not an HIDC and was subject to personal defenses that Locke had. Is Locke correct?
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Business Law Principles and Practices

ISBN: 978-1133586562

9th edition

Authors: Arnold J. Goldman, William D. Sigismond

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