BUSINESS LAW QUESTION Answer with a complete IRAC analysis. IRAC is Issue, Rule,
ID: 2466534 • Letter: B
Question
BUSINESS LAW QUESTION
Answer with a complete IRAC analysis. IRAC is Issue, Rule, Analysis, Conclusion.
Issue: Will the daughter recover $10,000 from Judy
Rule: (include every rule of law that applies)
Analysis: (Explain how the rules apply and why)
Conclusion: (Say how the court would rule the problem)
Millard Fillmore gave his daughter a $10,000 promissory note that had been given to him from Judy Smith for a loan that Fillmore had made to Smith. The note to the daughter was a birthday gift, and she promptly went to a local car dealer to enter into a purchase for a new car, with the intent to use the proceeds from the note as a down payment. The note was due on the daughter's birthday, and when she went to collect the amount from Judy, Judy refused to give her the money claiming that Millard made Judy sign the note even though Millard had given her the $10,000 as a gift, and really never intended to enforce it. The daughter has now sued Judy for the $10,000. Will she recover that amount from Judy? Why or why not? You must apply every rule of law that applies to this problem, but you may assume that the note is negotiable and that it was properly transferred, and the explanation of how the note was issued is provable.
Explanation / Answer
No she will not be able to recover the same. In case of dishonour the primary liability is against the endorser and only against the acceptor If the endorser is bankrupt. Hence she must claim against her father
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