Joan Made a Promissory Note Payable in the Amount of $1,000

question 6

Essay

Joan made a promissory note payable in the amount of $1,000 to Thomas. Since Thomas owed approximately $1,000 to an acquaintance, William, Thomas gave the note to William having inscribed on the back of it "I transfer all my rights in this note." William was not aware of the provisions in the Bills of Exchange Act. When William attempted to collect upon the promissory note from Joan, it was dishonoured, and the bank told William it did not know of Joan's whereabouts. William sought recourse against Thomas on the basis of his endorsement. Thomas pleaded he had transferred his rights in the note to William without any warranty or recourse, and the endorsement constituted only an assignment of his interest in the note and not an endorsement under the terms of the Bills of Exchange Act.
Discuss the issues raised in this case and render a decision.

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Definitions:

Sample Correlation Coefficient

A numerical value that determines both the magnitude and direction of a straight-line association between two variables measured quantitatively in a given sample.

Dependent Variable

The outcome factor whose variations are studied to determine the effect of one or more independent variables.

Independent Variable

A variable presumed to influence or determine the value of another variable, often called the dependent variable.

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables, ranging from -1 to 1.