Michael Issues a Check to Paula

question 14

Essay

Michael issues a check to Paula.She negotiates the check to Harold as payment for a used television set.Harold has no notice of any claims or defenses and takes the check in good faith.Harold indorses the check and gives it to his son as a birthday present.
a.Is Harold's son a holder in due course? Explain.
b.What rights does Harold's son have with respect to the check? Why? Explain.
c.Assume that Michael has a defense of fraud in the inducement against Paula.Can he use that defense against Harold? Can he use that defense against Harold's son? Explain.

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Definitions:

Igneous Intrusions

Igneous intrusions are formations created when molten rock from the Earth's interior cools and solidifies beneath the surface, disrupting the preexisting strata.

Foliation

The repetitive layering in metamorphic rocks caused by the reorientation of minerals under directed pressure.

Deposits

Sediments, minerals, or organic matter that have accumulated through geological processes in a particular location.

Granite

Granite is a coarse-grained igneous rock composed mainly of quartz, feldspar, and mica, known for its durability and widespread use in construction and monuments.