Question: Manley issued a $ 2 0 , 0 0 0 negotiable note to Preston to pay for a parcel of land. Preston misrepresented to Manley

Manley issued a $

20, 000

negotiable note to Preston to pay for a parcel of land. Preston misrepresented to Manley that the parcel contained fifty acres, when in fact it contained only forty acres. Preston negotiated the note to Carl. Carl paid Preston $

20, 000

for the note, and he took it without notice of Preston's fraud. Later Carl negotiated the note to Ned who knew that Manley claimed that he had been defrauded.

1 .

Is Carl a holder in due course?

2 .

Describe Ned's status?

3 .

Manley's defense of fraud is what type of defense?

4 .

Can Manley assert this defense against Ned?

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