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[Roommate Troubles] Dexter, Bernard, and Garren Were Roommates Who Do

Question 61

Multiple Choice

[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.
-If Garren properly presents the note to Dexter and Dexter simply writes "dishonor" on the note, is there a proper notice of dishonor?


A) No, because the notice does not identify the instrument in question.
B) No, unless Garren specifically states that he is dishonoring the note.
C) No, because Garren did not sign his name.
D) No, because simply writing "dishonor" is insufficient to constitute notice.
E) Yes, because if the word "dishonor" on the instrument is sufficient to constitute notice.

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