Monica contracted with Joe's Furnishing's to complete the work on her house by 1st November.She gave Joe's a negotiable promissory note in the amount of $20,000,payable to the order of Joe's on November 1.Joe's then negotiated the note to the bank.He however,could not complete the work by 1st of November.If the bank is able to qualify as a holder in due course,which of the following statements is true?
A) Monica is not liable to the bank because Joe's breached the contract,not her.
B) The bank can collect the amount from Joe's because he negotiated the note to the bank.
C) Monica can assert personal defense against the bank and avoid payment as Joe's did not complete the work on time.
D) Monica cannot assert personal defense against the bank and avoid payment as it was a negotiation,and not a simple contract.
Correct Answer:
Verified
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