Due to his debt to Chur, Schwyz wrote a promissory note which is payable to the order of Chur. Chur's sister, Sion, misrepresenting herself as agent of Chur, obtained the note from Schwyz. Sion then negotiated the note to Lausanne after forging the signature of Chur. May Lausanne enforce the note against Schwyz?
Due to his debt to Chur, Schwyz wrote a promissory note which is payable to the order of Chur. Chur's sister, Sion, misrepresenting herself as agent of Chur, obtained the note from Schwyz. Sion then negotiated the note to Lausanne after forging the signature of Chur. May Lausanne enforce the note against Schwyz?
Chapter9: Deductions: Employee And Self- Employed-related Expenses
Section: Chapter Questions
Problem 33P: On Thursday, Justin flies from Baltimore (where his sole proprietorship office is located) to Cadiz...
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Due to his debt to Chur, Schwyz wrote a promissory note which is payable to the order of Chur. Chur's sister, Sion, misrepresenting herself as agent of Chur, obtained the note from Schwyz. Sion then negotiated the note to Lausanne after forging the signature of Chur. May Lausanne enforce the note against Schwyz?
a. Yes, since Schwyz is the principal debtor.
b. No, since it is Chur who can enforce it, the note being payable to the order of Chur.
c. No, since the signature of Chur was forged.
d. Yes, since Schwyz, as maker, is primarily liable on the note.
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