Given situation: Mr and Mrs Person M bought a used soft in the auction conducted by person A. It is a part of Place S estate, had a safe locked inside. This truth was known to both the auctioneer and person M. shortly after the auction, a locksmith, who found $32,207 inside, opened person S’s compartment. Later the money was impounded by the police department. The town of place E brought a lawsuit against the property of place S and person M to decide the owner of the money. To discuss: Judgement in favour of person M.

Question

Abigail is in the business of selling fine antiques. Abigail purchased an antique desk for $5,000 from Jackson, and gave a promissory note for payment. Concerned that Jackson might not accept the note, Abigail had her friend Catalina sign the promissory note as well. Jackson accepted the note as payment. Two weeks later, Jackson sought payment on the note. Abigail told Jackson that she is not responsible for the promissory note because Catalina signed the note too, and Jackson had to seek payment from Catalina first. Abigail also spotted a beautiful set of vintage chairs owned by Max that would be perfect for her store. Abigail wrote a $10,000 check, also signed by her business associate Orville as an accommodation party, to Max to pay for the chairs. Max presented the check to Westville Savings, the bank where Abigail has a checking account, for payment. Westville Savings dishonored the check claiming Abigail had insufficient funds. Who is liable for these negotiable…

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Chapter 10, Problem 21CP

Summary Introduction

Given situation:

Mr and Mrs Person M bought a used soft in the auction conducted by person A. It is a part of Place S estate, had a safe locked inside. This truth was known to both the auctioneer and person M. shortly after the auction, a locksmith, who found $32,207 inside, opened person S’s compartment.

Later the money was impounded by the police department. The town of place E brought a lawsuit against the property of place S and person M to decide the owner of the money.

To discuss: Judgement in favour of person M.

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Abigail is in the business of selling fine antiques. Abigail purchased an antique desk for $5,000 from Jackson, and gave a promissory note for payment. Concerned that Jackson might not accept the note, Abigail had her friend Catalina sign the promissory note as well. Jackson accepted the note as payment. Two weeks later, Jackson sought payment on the note. Abigail told Jackson that she is not responsible for the promissory note because Catalina signed the note too, and Jackson had to seek payment from Catalina first. Abigail also spotted a beautiful set of vintage chairs owned by Max that would be perfect for her store. Abigail wrote a $10,000 check, also signed by her business associate Orville as an accommodation party, to Max to pay for the chairs. Max presented the check to Westville Savings, the bank where Abigail has a checking account, for payment. Westville Savings dishonored the check claiming Abigail had insufficient funds. Who is liable for these negotiable…

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