Elliot Bought a Widget from Margaret

question 75

True/False

Elliot bought a widget from Margaret.He paid the purchase price of $5000 by giving her a cheque that he had drawn on his account at the Bank of Yorkton.Before Margaret had an opportunity to present the cheque for payment, Elliot died.The cheque therefore is automatically considered to be certified.

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Definitions:

Security Interest

A legal claim on collateral that gives a lender the right to property if a loan is not repaid.

Legal Sense

Pertains to understanding, awareness, or interpretation within the context of the law.

After-Acquired Property

Property of the debtor that is obtained after a security interest in the debtor’s property has been created.

Security Agreement

A contract that grants a lender a security interest in an asset, which serves as collateral for a loan.