Asked by
Tyree Hunter
on Dec 06, 2024
Verified
Tom gave celebrity Lynnetta Landau a blank sheet of paper and asked her to sign her autograph on it.Then,without Lynetta's knowledge,Tom wrote a promissory note made payable to him for $3,000 above her signature.This kind of fraud is known as fraud:
A) as to the essential nature of the transaction,which may not be used as a defense against a holder in due course.
B) as to the essential nature of the transaction,which may be used as a defense against a holder in due course.
C) in the inducement,which may not be used as a defense against a holder in due course.
D) in the inducement,which may be used as a defense against a holder in due course.
Promissory Note
A written promise to pay a specified sum of money to a certain individual or entity at a specified time or on demand, under specified conditions.
Fraud in the Inducement
A deceitful practice where a person is misled through misrepresentation to enter into a contract or agreement.
Essential Nature
The fundamental qualities or characteristics that define the true identity or core purpose of something.
- Apply the concept of fraud and alteration in negotiable instruments and their impact on the rights of holders in due course.
Verified Answer
SD
Learning Objectives
- Apply the concept of fraud and alteration in negotiable instruments and their impact on the rights of holders in due course.