Nego Inst Quiz

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2 a.

The check can be enforced against Rhianna by Juan Carlo given that Juan Carlo is a holder in
due course and has no knowledge about the alteration. Even if the instrument is stolen and
the thief cannot obtain title from a stolen instrument, the thief, or Rhiana in this case, can
transfer title to subsequent holders.

Thus, Juan Carlo can enforce the check against Rhianna.

b.
Yes.

It is a settled rule that when a negotiable instrument is materially altered, the parties who
made, authorized, or assented to the alteration of the subsequent holders are liable to the
negotiable instrument and to the holder.

In this case, Patty has knowledge of the check being stolen and has assented to it. Therefore,
the holder can enforce the check against Patty.

c
Yes, the holder can enforce the check against Angel, Behati, and Carla.

As a rule, holders in due course hold the instrument free from any defect of title of prior
parties. Thus, the holder can enforce the check against all subsequent parties.

3. In accordance to sec 57, if Yelena is a holder in due course, she can enforce the
instrument for payment of the whole amount to all previous parties.

b.
If Yelena is not a holder in due course, she can enforce payment but only to the subsequent
holders except Maria even if she is not a holder in due course provided that such instrument
came from the title of a holder in due course and, she, herself is not a party to any fraud
affecting the instrument.

In Section 58, even if the holder is not a holder in due course but obtained the instrument
from a person who is a holder in due course, he acquires all the rights of such former holder
in respect of all parties prior to the latter.

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