QUESTION 1 Carl is the maker of a note on which David is the payee. David indors

Question

QUESTION 1 Carl is the maker of a note on which David is the payee. David indorses the note in blank and delivers it to Edward, who then transfers it to Fred without indorsement. Fred then presents it to Carl for payment when it becomes due, but Carl claims he signed the note base upon fraud in the inducement. If all of the transfers in question were for value and there are no other defenses available a. Who has primary liability of the instrument? Who is secondarily liable on the instrument? b. Who has warranty liability? Why? Explain. c. From whom can Fred try to collect now that Carl has refused to pay? TTI Arial 3(12pt) T-·-·-· ·ecs Path: p Words:0 QUESTION 2 A number of the functions of the law can be viewed as contradictory. For example, one function is to maintain the status quo, whereas another is to facilitate orderly change. What other functions could be in conflict with one another? How can the law simultaneously have seemingly inconsistent functions? TTI Arial : 3(12pt) . TILE . E.ees

Explanation / Answer

Question 1). a). Answer :- Carl has the primary liability and David has the secondary liability of a note in the given question.

Question 1). b). Answer :- David has warranty liability as does the Edward, Although, The note is not indorsed by him.

Question 1). c). Answer :- If Carl does not pay to the Fred then he (Fred) will collect either from David or Edward.

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