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Michael Issues a Check to Paula

question 28

Essay

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

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Definitions:

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Groups of people who lack adequate access to essential services such as healthcare, education, and housing.

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Individuals or organizations that actively promote, defend, or seek to influence public policy and decision-making in favor of specific causes or issues.

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