Albany, N. Y., June 1, 1920. $7,500.
Three months after date we promise to pay to order of A. B. Corporation Seventy Five Hundred Dollars.
John Smith, Pres. Elmer H. Brown, Treas.
This note was written on a blank note on the margin of which "R. T. Company" was printed. The note was discounted by a bank who sue Smith and Brown. Are they liable?
52. What is meaning of statement that consideration is "presumed"? May it be shown lacking? Is it necessary to recite consideration or to say "value received"?
53. A is sued by the payee on a note for $2000. He pleads that $250 of the note represents value and 1750 an intended gift which he does not now desire to make. Is he entitled to make this partial defense? (Sharp v. Sharp, 4 Ohio Ap. 418.)
54. Define acceptance.
55. Can acceptance be made orally? Can there be a written acceptance not on the bill itself?
56. A bill of exchange is drawn on D. He fails to return it accepted or unaccepted within twenty-four hours. Can he be sued on the bill as acceptor?
57. What are the two kinds of acceptances?
58. Is an acceptance which names a place of payment qualified?
59. Must the holder take a qualified acceptance? What effect has a qualified acceptance on drawer and indorsers?
60. State the effect as to having a check certified.
61. What is meant by term "accommodation" party; in what capacities may a person sign as accommodation party? Can such a person be held if the holder knew he signed for accommodation?
62. Distinguish between an accommodation maker and a maker who signs without consideration, showing why a holder with knowledge can hold the maker in the first place, but not in the second.
63. A for B's accommodation makes a note payable to B. Has A a defense if sued by B on this note?
64. A makes an accommodation note to B or order, due July 1st. On July 15 B transfers it to C for value, who knows that A was an accommodation maker. Has A a defense?
65. Define acceptance for honor; how does an acceptor for honor differ from an accommodation acceptor?
66. If not stated, for whose honor is the acceptance presumed to be?
67. To whom is an acceptor for honor liable?
68. How is acceptor for honor discharged?
69. Define payment for honor.
70. What is meant by negotiation? What paper is negotiable without indorsement?
71. Can there be an indorsement apart from the instrument indorsed? If there is no room for indorsement on the paper, how can its indorsement be accomplished?
72. Can an indorsement be on the face of the paper? (E. D. Fisher Lumber Co. v. Robbins, 180 Pac. (Kans.) 264.)
73. Are words of negotiability necessary in indorsement?
74. What is the rule about partial indorsements?
75. Distinguish between special and blank indorsements.
76. A, being payee of a note indorsed it "without recourse in any way" and delivered it to B for value. The name of the maker was forged. Can A be held on his indorsement? (Miller v. Stewart, 214 S. W. 565.)
77. What is a restrictive indorsement? What is its effect?
78. M made a note to order of P who indorsed to E who indorsed to H "upon condition that H deliver his automobile car on the maturity of this note." H presented the note to M for payment. Must M make inquiry? Suppose he knows that H has not delivered the car, should he pay the note?
79. Define a "holder in due course."
80. A purchased a note that was not stamped according to the U. S. Federal Law. Is he a holder in due course? (Lutton v. Baker, 174 N. W. 599.)
81. If one purchases paper at an unusually large discount, is he a "holder for value"?
82. A, having a note made by M, deposited it in a bank which credited it to his account. Is the bank a purchaser for value? (Marion Nat. Bk. v. Harden, 83 W. Va. 119.)
83. P has a note made to him nearly six months previous and having four days yet to run, and secured by mortgage, discounts it to H for 2/3 of its value. Is H a holder in due course? (Knowlton v. Schultz, 71 N. W. (N. D.) 550.
84. If one buys a note knowing that the consideration is yet to be performed, is he a purchaser in good faith?
85. Is negotiable paper negotiable after maturity? What is the rule as to a purchaser's rights on overdue paper?
86. When is demand paper overdue?
87. Is paper overdue because interest is overdue? If an installment of principal is overdue? Is there a provision that on default of payment of interest, the principal shall become due, and such default occurs?
88. H buys a note from P which is made by M to P's order. P neglects to indorse it. After the note becomes overdue, H gets P to indorse it. H then learns that M has a defense. Is H a bolder in due course?
89. M makes a note to order of P and P sells to II, a holder in due course. After maturity of the note H presents it to plaintiff. M claims that the consideration for the note has failed and that plaintiff is not a holder in due course. Is plaintiff subject to the defense?
90. On whom is burden of proof as to whether holder is holder in due course?
91. H buys a $1000 note made by M, from the payee, P, for $750.00. Assuming that H is a holder in due course, what amount is H entitled to recover?
92. What is meant by "personal" defenses; what by term "real defenses" ?
93. M borrows money from P, and gives him his promissory note for three months. He pays this money back before maturity but neglects to take up the note. P sells to H, a holder in due course. Is M's defense good against H?
94. Is a set-off a defense against a holder in due course?