Mark gives a bearer note for $50 to Joe in exchange for an excellent dinner at Joe's restaurant. Joe delivers the note to Sue for $50 and Sue takes it to Mark to be paid. If Mark says the note was originally written for only $5, what can Sue do?
A) Hold Joe liable for breach of warranty.
B) Get $50 from Mark.
C) Hold Joe liable for breach of contract.
D) Any of these.

Question

Quizplus · Accepted Answer

Sue can hold Joe liable for breach of warranty as he warranted that the note was genuine and legally enforceable. Joe should have checked the authenticity and validity of the note before accepting it from Mark.

Mark Gives a Bearer Note for $50 to Joe in Exchange