1. A check issued Payable to the order of Rowan University for the amount of $1,
ID: 341240 • Letter: 1
Question
1. A check issued Payable to the order of Rowan University for the amount of $1,050. The drawer wrote the words “ one thousand, five hundred and 00/100 dollars” on the check. Is the check negotiable? Why or why not?
2.Sam purchased a bike from ABC Bike Company. Sam gave the bike company a check for $400, the price of the bike. ABC negotiates the check to Atlantic Electric , who takes the check in good faith, for value and without notice of a claim or defense. Sam later discovers that ABC delivered the wrong bike to him and refuses to honor the check. In a conflict between Sam and Atlantic Electric, who wins? Why?
Explanation / Answer
ANSWER - 1 - CHECK IS NOT NEGOTIABLE , IN ORDER TO BE NEGOTIABLE , THE FIGURE AND WORD MUST BE CORRECT , BANK WILL DISHONOUR IN CASE OF MISMTACH AND UNCORRECT.
ANSWER -2 - NO CLAIM IN BETWWWN SAM AND ATALANTIC , IT IS MATTER OF ABC AND ATTALANTIC , SAM AND ABC HAVE SEPERATE DISPUTE AND ATALANTIC HAVE TO CLAIM FROM ABC ONLY.
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