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.
Correct Answer:
Verified
Q1: A person can be considered to be
Q3: A negotiable instrument is a special type
Q12: Analee bought a widget from Nathan.On March
Q14: Karinda sold a widget to Konrad.He paid
Q15: Stefan gave a cheque for $500 to
Q17: A share certificate may be a type
Q18: A document may be a negotiable instrument
Q19: Alexandra bought a snow blower from Rajeev.The
Q21: On June 1,Rituparna bought a widget from
Q22: Fenna created a promissory note for $10
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