X Signs a Negotiable Instrument Ordering Y to Pay Z

question 59

Multiple Choice

X signs a negotiable instrument ordering Y to pay Z the sum of $500.Y is the:

• A) drawer.
• B) payee.
• C) maker.
• D) drawee.

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Definitions:

Breach of Contract

Violation of any terms or conditions in a contract without a lawful excuse, which may result in legal action.

Adequacy of Consideration

A legal principle assessing whether what is exchanged in a contract (goods, services, or money) is fair and of sufficient value.

Mistake as to Existence

A legal misunderstanding or error regarding the actual existence of a subject matter or condition of a contract.

Fraudulent Misrepresentation

A false statement made knowingly without belief in its truth or recklessly and without concern for its truth, which induces another party to enter into a contract.