Chris Fraudulently Induced Lucianna into Drawing a Cheque for $10

question 31

Essay

Chris fraudulently induced Lucianna into drawing a cheque for $10 000.Chris then negotiated the cheque to Kenneth,who is a holder in due course.Is Kenneth entitled to receive payment on the cheque? Do you need any more information before answering that question? Explain your answer.

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Definitions:

Creditors

Persons or entities to whom money is owed by debtors or borrowers.

Full Payment

The complete settlement of a debt or obligation, leaving no balance.

Court Approval

The formal endorsement by a judge or court of an action, agreement, or decision before it can legally take effect.

Preferential Payment

A payment made by a debtor that favors one creditor over others, often scrutinized in bankruptcy proceedings.