2. Comment briefly on the provisions described in these instruments as to their bearing on negotiability. In each instance, the other portions of the instrument are in proper form. a. A bill of...

Comment briefly on the provisions described in these instruments as to their bearing on negotiability. In each instance, the other portions of the instrument are in proper form.

2. Comment briefly on the provisions described in these instruments as to their bearing on negotiability. In each instance, the other portions of the instrument are in proper form.  a. A bill of exchange drawn by Y on Z directs Z to pay $1,000 to the order of A and charge this amount to Y’s “Book Fund.” Answer: b. The XYZ Company (a partnership) signed a note promising to pay $1,000 and bearing the notation “limited to payment out of the entire assets of the maker.” Answer: c. X signed a note promising to pay $5,000 or deliver 100 barrels of oil at the option of the holder. Answer: d. One of the notes is payable “five days after the death of the maker.” Answer: e. A note contains the following notation: “with interest at bank rates.” Answer:  3. Moira executed a note and a purchase money mortgage to Al. Al negotiated the note to Tiger Bank. The note contained the following stipulation: “This note with interest is secured by a mortgage on real estate, of even date herewith, made by the maker hereof in favor of the said payee. The terms of said mortgage are by this reference made a part hereof.” Is the note negotiable? Explain. Answer: 4. Skyblast Freight executed a note that contained the following provisions: “This note is payable only from the proceeds of the sale of the Skyblast Freight Building.” Is the note negotiable? Why or why not? Answer: 5. An employer gave the Pension Fund Company a note stat-ing that the employer promises to pay Pension Fund Company “all current contributions as they become due under the collective bargaining agreement in addition to the sum of $15,606.44 with interest.” Is this note negotiable? Why or why not? 6. Horace Brace has in his possession the following instrument: November 1, 2017 I, Walter Forgel, hereby promise to pay Charles Smidlap ONE THOUSAND DOLLARS ($1,000.00) one year after date. This instrument was given for the purchase of FIVE HUNDRED (500) shares of Beefsteak Mining Corporation. Interest at 10 percent. [Signed] Walter Forgel Horace Brace purchased the instrument from Charles Smidlap at a substantial discount. Smidlap specializes in the sale of counterfeit mining stock. Walter Forgel is one of his innocent victims. What are the rights of Brace against Forgel on the instrument? Explain. Answer: 7. Roberts was a holder in due course of a properly drawn check payable to “Bearer.” He endorsed the check as follows: Pay to the order of Wilson Hall without recourse. [signed] Peter Roberts What type of endorsement did Roberts make? If Hall wishes to negotiate the instrument, what is required? Explain. Answer: 8. Casey held a negotiable instrument payable to his order. He transferred the instrument to Dale for value. At the time of transfer, Casey failed to endorse his name on the back of the instrument, and Dale accepted the instrument as given to him. What rights does Dale have on the instrument? Explain. Answer: 9. Quincy signed a promissory note payable to the order of Unger, who endorsed the note in blank over to Pritchard. Pritchard then transferred the note to Truax by delivery. Is Truax a holder of the instrument? Why or why not? Answer: 10. Byron issued a check payable to the order of Garcia, who lost it without endorsing it. Can a finder of the check negotiate it? Why or why not? Answer: