Shamrock owns a unique little company called “WORMS-R- US” that supplies all the

Question

Shamrock owns a unique little company called “WORMS-R- US” that supplies all the
worms that you see in the bottom of bottles of tequila. Shamrock enters into a contract
with MANUAL MANURE, a Spanish worm grower, to buy 1000 pounds of Grade “A”
worms for $2,000. Shamrock gives Manual a promissory note in the amount of $2,000,
payable to the order of Manual Manure and payable on demand. The note is signed by

Shamrock and the worms are to be delivered to Shamrock within 10 days of the signing
of the promissory note at which time Shamrock will pay the sum of $2,000 plus interest
to Manual. Manual takes the promissory note to his good friend MEYER GOLDBERG,
a Jewish candle maker, and asks Meyer if he would buy the promissory note. Meyer
agrees and gives Manual a check for $2,000 payable to the order of Manual Manure and
Manual endorses the back of the promissory note by qualified endorsement and gives the
note to Meyer. The check is written on the Deposit Bank & Trust Company. Manual
takes this check to the Bank, signs the back of the check with a blank indorsement and he
cashes the check. Manual promptly looses the $2,000 in a game in the basement of
“Our Lady of Loser’s” Catholic Church and Manual delivers no worms to Shamrock.
After ten days Meyer demands payment of the promissory note from Shamrock and
Manual. Using this fact situation please answer the following questions:
A. Who of the above named parties would be best described as:
1. Endorser: 6. Maker:
2. Endorsee: 7. Payee:
3. Bearer: 8. Holder
4. Drawer:
5. Drawee:

B. What are Meyer’s rights to collect the $2,000 on the promissory note from Shamrock
and Manual and under what theory or theories of law can he collect or not collect?

Explanation / Answer

1. Endorser: Shamrock

2. Endorsee: MANUAL MANURE

3. Bearer: MEYER GOLDBERG

4. Drawer: MEYER GOLDBERG

5. Drawee: Bank & amp; Trust Company

6. Maker: Shamrock

7. Payee: MAUAL MANURE

8. Holder: MEYER GOLDBERG

According to the Bureau of Economic Analysis (BEA) where a liability for a note endorsed, the note must be presented for payment at the place specified in the note in order to render the endorser of the note liable. Otherwise if no time for payment is specified in the note, it will be deemed payable on demand. If on presenting a is not accepted can’t be paid, it will be considered as “dishonored” and an immediate right of resources will accrue to bearer of note or holder in due case. Therefore MEYER GOLDBERG has the tight to collect promise value from Shamrock according to the BEA.

In MANUAL MANURE point of view he does fraud and undue influence to get the money from MEYER. Therefore ultimately he was the liable person to pay promissory note. Because he does not deliver the promised Grade a worm to Shamrock. This was support by court order such as R.v. Saunders Therefore Meyer cab collect money from MANUAL

Limitation Act, 2002 imposed six year limitation period on demand note. After 6 year you cannot claim the value of a promissory note.

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