Kira Forges Lew's Name as the Drawer of a Stolen

question 20

Multiple Choice

Kira forges Lew's name as the drawer of a stolen check, drawn on Metro Bank, and makes the item payable to Kira. Lew is liable to pay the amount to

• A)no one.
• B)ordinary holders only.
• C)ordinary holders, HDCs, and holders through HDCs.
• D)HDCs only.

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Definitions:

Implied Condition

A legal term referring to a term or condition not expressly stated in a contract but assumed to be included by necessity or by the nature of the agreement.

Materially Breach

A significant failure to perform one's duties under a contract that results in harm to the other party and provides grounds for termination of the agreement.

Total Breach

A significant failure to fulfill a core obligation of a contract, allowing the other party to terminate the agreement and seek damages.

Estoppel

A legal principle preventing someone from arguing something contrary to a claim previously made or acted upon in good faith.