Carl is the maker of a note on which David is the payee.David indorses the note in blank and delivers it to Edward,who then transfers it to Fred without indorsement.Fred then presents it to Carl for payment when it becomes due,but Carl claims he signed the note base upon fraud in the inducement.If all of the transfers in question were for value and there are no other defenses available:
a.Who has primary liability of the instrument? Who is secondarily liable on the instrument?
b.Who has warranty liability? Why? Explain.
c.From whom can Fred try to collect now that Carl has refused to pay?

Question

Carl is the maker of a note on which David is the payee.David indorses the note in blank and delivers it to Edward,who then transfers it to Fred without indorsement.Fred then presents it to Carl for payment when it becomes due,but Carl claims he signed the note base upon fraud in the inducement.If all of the transfers in question were for value and there are no other defenses available: 
a.Who has primary liability of the instrument? Who is secondarily liable on the instrument?
b.Who has warranty liability? Why? Explain.
c.From whom can Fred try to collect now that Carl has refused to pay?

Quizplus · Accepted Answer

The Answer of Carl is the maker of a note on which David is the payee.David indorses the note in blank and delivers it to Edward,who then transfers it to Fred without indorsement.Fred then presents it to Carl for payment when it becomes due,but Carl claims he signed the note base upon fraud in the inducement.If all of the transfers in question were for value and there are no other defenses available: 
a.Who has primary liability of the instrument? Who is secondarily liable on the instrument?
b.Who has warranty liability? Why? Explain.
c.From whom can Fred try to collect now that Carl has refused to pay?

Carl Is the Maker of a Note on Which David