Adams, who reads with difficulty, arranged to borrow ($2,000) from Bell. Bell prepared a note, which Adams
Question:
Adams, who reads with difficulty, arranged to borrow \($2,000\) from Bell. Bell prepared a note, which Adams read laboriously. As Adams was about to sign it, Bell diverted Adams’s attention and substituted the following paper, which was identical to the note Adams had read except that the amounts were different:
On June 1, 2016, I promise to pay Ben Bell or order Twelve Thousand Dollars with interest from date at 16 percent. This note is secured by certificate No. 13 for one hundred shares of stock of Brookside Mills, Inc. Adams did not detect the substitution, signed as maker, handed the note and stock certificate to Bell, and received from Bell \($2,000.\) Bell indorsed and sold the paper to Fore, a holder in due course, who paid him \($11,000.\) Fore presented the note at maturity to Adams, who refused to pay. What are Fore’s rights, if any, against Adams?
Step by Step Answer:
Business Law And The Regulation Of Business
ISBN: 9781305509559
12th Edition
Authors: Richard A. Mann, Barry S. Roberts