Exam 30: Liability of the Parties Under Negotiable Instruments

The primary party on a note or certificate of deposit is the drawer.

Under the __________doctrine,the holder has taken so many instruments from its transferor or is so closely connected with the transferor that any knowledge the transferor has is deemed transferred to the holder,preventing holder in due course status.

Fraud in the inducement is a:

When the primary party refuses to pay an instrument according to its terms,said party is required to give:

A universal defense will defeat a holder in due course and a holder through a holder in due course.

Manuel sued Patricia on a promissory note.Patricia admitted signing the note,but raised the defense that Manuel was not a holder in due course.Can Manuel recover without proving that he is a holder in due course?

A holder may:

Fraud as to the nature or essential terms of an instrument is a limited defense not available against a holder in due course.

The primary party on a draft is the drawee,assuming that the drawee has accepted the draft.

A holder in due course must meet all of the following conditions except:

A holder can recover from any of the parties who are liable on the instrument,regardless of the order of the signatures on the instrument.

A person who acquires a negotiable instrument with notice or knowledge that any party might have a defense or that there is any adverse claim to the ownership of the instrument:

An altered instrument can be enforced according to its original terms.