Fenna created a promissory note for $10 000 that was payable to the order of Mark. She delivered that instrument to him. Mark is indebted to Muriel for $10 000. He wants to discharge that debt by allowing Muriel to receive payment under the note that Fenna created. Muriel is unsure whether Fenna or Mark would be capable of actually paying $10 000 if asked to do so. However, Muriel is confident that Mark's brother, Cameron, is capable of paying $10 000. Which of the following statements is TRUE?
A) Muriel's wishes can be satisfied by the creation of a special endorsement by Mark and an accommodation endorsement by Cameron.
B) Mark is not entitled to negotiate Fenna's note to Muriel if that note is payable on demand.
C) Cameron cannot be held liable unless he becomes the holder of the note at some point.
D) Muriel's wishes can be satisfied by the creation of a special endorsement by Mark and an identifying endorsement by Cameron.
E) Muriel's wishes can be satisfied by the creation of a special endorsement by Mark and an accommodation endorsement by Fenna.
Correct Answer:
Verified
Q26: Which of the following statements is TRUE
Q27: Ismail used a cheque to pay for
Q28: Sylvain attempted to draft a cheque in
Q29: On January 1, Jasmine bought a speedboat
Q30: Bamidele drafted a negotiable instrument and delivered
Q32: Wendell bought a widget from Sharon and
Q33: Scott bought a widget from Gowhara. The
Q34: Ranjit currently has possession of a cheque
Q35: Which of the following statements is TRUE
Q36: Which of the following represent types of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents