Fenna created a promissory note for $10 000 that was payable to the order of Mark.She delivered that instrument to him.Mark is indebted to Muriel for $10 000.He wants to discharge that debt by allowing Muriel to receive payment under the note that Fenna created.Muriel is unsure whether Fenna or Mark would be capable of actually paying $10 000 if asked to do so.However,Muriel is confident that Mark's brother,Cameron,is capable of paying $10 000.Which of the following statements is TRUE?
A) Mark is not entitled to negotiate Fenna's note to Muriel if that note is payable on demand.
B) Muriel's wishes can be satisfied by the creation of a special endorsement by Mark and an accommodation endorsement by Cameron.
C) Muriel's wishes can be satisfied by the creation of a special endorsement by Mark and an identifying endorsement by Cameron.
D) Muriel's wishes can be satisfied by the creation of a special endorsement by Mark and an accommodation endorsement by Fenna.
E) Cameron cannot be held liable unless he becomes the holder of the note at some point.
Correct Answer:
Verified
Q1: A person can be considered to be
Q17: A share certificate may be a type
Q17: Martina bought a necklace from Roland.The price
Q18: A document may be a negotiable instrument
Q21: On June 1,Rituparna bought a widget from
Q23: Which of the following statements is TRUE
Q24: On January 1,Jasmine bought a speedboat from
Q25: Raj owed $5000 to Monica.In payment of
Q26: Ismail used a cheque to pay for
Q27: Natalia has a chequing account at the
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