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rusak2 [61]
3 years ago
12

Susie Smith signed a note agreeing to pay "Annie Greene, Mary Hodge" $1,000. The payment was for painting her house. An issue wi

th the note was that it spelled Annie's last name "Greene," whereas Annie spells it simply "Green." Annie and Mary had a disagreement regarding how to split up the funds for painting the house. Annie proceeded to sign the note on the back "Annie Green" and presented it to Bill Brown to satisfy a debt that she owed him. Bill Brown endorsed the note on the back and took it to the bank for payment. Mary is unhappy because she did not obtain any of the funds and stated that Annie could not legally endorse the instrument because it misspelled her name and because Mary did not sign it. Which of the following is true regarding Mary's claim that the endorsement by Annie was illegal because the note misspelled Annie's name?
A) He is not a holder in due course because he did not provide value.B) He is not a holder because he did not provide value.C) He is not a holder nor is he a holder in due course because he did not provide value.D) The fact that a gift was involved does not prevent Sam from being a holder in due course so long as other requirements are satisfied.E) The fact that a gift was involved does not prevent Sam from being a holder in due course so long as other requirements are satisfied and Sam is not a minor.
Business
1 answer:
r-ruslan [8.4K]3 years ago
5 0

Answer:

All the options are wrong, they seem to be from another question.

But the correct answer to this question is that Mary is wrong, Annie can legally endorse the note even if her last name was misspelled. Since the misspell was a minor error, only an extra letter (Green vs. Greene), she can do it without any problem because it's easy to prove she is the same person.

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