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Martina Bought a Necklace from Roland

Question 10

Multiple Choice

Martina bought a necklace from Roland.The price of the necklace was $10 000.Martina promised Roland that she would pay that amount to him.As part of the same transaction, she also gave him a cheque for that amount.Roland later bought a painting from Astral Gallery Inc.The price of the painting was $10 000.Which of the following statements is TRUE?


A) Roland can pay for the painting by negotiating the cheque to Astral Gallery only if Astral Gallery and Martina have accounts with the same bank.
B) Roland could pay for the painting by negotiating the cheque to Astral Gallery, but he could not pay by assigning to Astral Gallery the rights that he has against Martina under the earlier sales contract.
C) Roland could pay for the painting by cashing the cheque and delivering the money to Astral Gallery, but he could not simply negotiate to Astral Gallery the cheque that he had received from Martina.
D) If given a choice, Astral Gallery would probably prefer to receive an assignment of the rights that Roland has against Martina under the earlier sales contract, rather than negotiation of Martina's cheque.
E) Roland is entitled to recover $10 000 from Martina under their sales contract or $10 000 from her on the basis of her cheque, but not both.

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