[Roommate Troubles] Dexter, Bernard, and Garren were roommates who do not get along and decide to go their separate ways when their lease expires on May 31. Dexter owes Bernard $500 and signs a promissory note that he will pay Bernard $500 by July 1. Bernard, who owes Garren money, endorses the back of the note and writes "Pay to the order of Garren" on the back and gives the note to Garren. On July 2, Garren tells Dexter that Bernard signed the promissory note to him, so Dexter should just pay Garren the $500. Dexter refuses to pay Garren anything. Garren then tells Bernard that Dexter dishonored the note and sues Bernard for the value of the note.
-Did Dexter dishonor the promissory note?
A) Yes.
B) No, although Garren met the requirements for presentment and Dexter refused to pay, he did not explicitly dishonor the note.
C) No, Garren only told Dexter about the promissory note and never exhibited the promissory note to Dexter, therefore there was no presentment and Dexter did not dishonor the note.
D) No, Garren did not present the note in a timely manner, therefore Dexter did not dishonor the note.
E) No, Garren was not a proper party, therefore Dexter did not dishonor the note.
Correct Answer:
Verified
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