Question: Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates

Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000.
(a) If Hilda is a holder in due course, how much can she recover from Marcus? How much from Parish? If Marcus's negligence substantially contributed to the making of the alteration, how much can Hilda recover from Marcus and Parish, respectively?
(b) If Hilda is not a holder in due course, how much can she recover from Marcus? How much from Parish? If Marcus's negligence substantially contributed to the making of the alteration, how much can Hilda recover from Marcus and Parish, respectively?

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Material Alteration a Since a payee is a holder Section 120120 his fraudulent and material alterati... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1272-L-B-L-I-C-B(461).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Moore issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Holton for $12,000. (a) If Holton is a...

Explain whether each of the following transactions results in a valid negotiation: (a) Arnold gives a negotiable check payable to bearer to Betsy without indorsing it. (b) Golden indorses a...

Melvin executed and delivered to Dawkins a negotiable promissory note payable to the order of Dawkins as payment for one hundred bushels of wheat Dawkins had sold to Melvin. Dawkins indorsed the note...

Marcus issues a negotiable promissory note payable to the order of Parish for the amount of $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000. If Hilda is a holder in...

Marcus issues a negotiable promissory note payable to the order of Parish for $3,000. Parish raises the amount to $13,000 and negotiates it to Hilda for $12,000. a. If Hilda is a holder in due...

11. The maker, by making the instrument, has the following liabilities, except: a. The engagement to pay the instrument according to its tenor b. The admission of the existence of the payee c. The...

1. Felix draws a check payable to "DeliMart" to buy groceries. Felix's check is most likely a. a certificate of deposit. b. an order to pay. c. a promise to pay. d. a promissory note. 2. Felix draws...

I've attached the question as a word file, thanks! JWCL165_c10_444-505.qxd 8/12/09 7:24 AM Page 444 10 Liabilities Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1...

You are a new hire at a local bank. On your first day, your boss comes to you with a problem. Due to a screw up in the legal department, new loan documents didn't include the requirement for an audit...

Identify whether each circumstance provided will promote an Increase or decrease in blood pressure. Increased activation of the thirst mechanism Increasing levels of aldosterone Decreased sodium...

Describe a real-life problem (for example pollution, public transit, and ER wait times) where you have encountered a problem that could have benefited from a design-thinking approach. Outline some of...

9. Repeat steps 3 to 8 taking extra care to stop adding acid immediately the indicator changes colour. On you first attempt you may have overshot the point where the indicator changes colour. This...

ThePoliticalFreedomMatrixmeasuresthepoliticalimpactoninternationalentrepreneurship.Explain.

Timothy retains Cynthia, an attorney, to bring a lawsuit upon a valid claim against Vincent. Cynthia fails to make herself aware of recently enacted legislation that shortens the statute of...

Wilson engages Ruth to sell Wilsons antique walnut chest to Harold for $2,500. The next day, Ruth learns that Sandy is willing to pay $3,000 for Wilsons chest. Ruth nevertheless sells the chest to...

Morris, a salesperson for Acme, Inc., a manufacturer of household appliances, receives a commission on all sales made and no further compensation. He drives his own automobile, pays his own expenses,...

Using a suitable database package, import the file J 1 0 KITES.CSV Assign the following data types to the fields.

Senior management at Humber bakery requested a new analysis based on adjusting the selling price and the number of units produced under each production plan. Initial probability estimates are also...

A study conducted to assess mercury levels for saltwater fish caught off the course of New Jersey found that a sample of 23 bluefin tuna had mean mercury level of 0.52 ppm, with standard deviation...