Question

Harry performed work for John. John gave Harry a promissory note. Harry accepted it with no notice of dishonor and in good faith. The promissory note was payable in 30 days and it was in the amount of $1000. In 30 days Harry presented the promissory note to John for payment and John refused to pay. Harry sued John and in his defense John was able to prove that the signature on the promissory note was a forgery. Question:: What kind of holder is Harry? Ordinary or a holder in due course and why. Question: Will John’s defense be successful? Question: Would the result be different if John’s defense would have been intoxication?

PLEASE TYPE YOU ANSWER THIS QUESTION IS FOR BUSINESS LAW II

THANKS

Answer 1

Harry is a holder in due course as in the eyes of law, the holder in due course is the person who accepts the negotiable instrument in a good faith and he or she is not aware of any prior claim or any sort of defect with the title of the person negotiated the instrument.

If John is able to prove that the signature on the instruement was a forged one, then the legality ofthe instruement will be in question and thus the instruement cannot be negotiated

As per negotiable instruement act, the negotiable instruement must be signed and prepared by a sane mind,under no influence of drug or threat. If John can prove that he was in an intoxicated condition, his defence will be accepted by the court