Asked by Jenna Kenneally on May 06, 2024
Verified
Which of the following is true regarding Floyd's entitlement to payment from Hema?
A) Floyd is only entitled to payment from Hema because Anne dishonored the payment.
B) Floyd is not entitled to payment from Hema unless Rahul, in addition to Anne, dishonors the instrument.
C) Floyd is never entitled payment from Hema because he must seek recovery only from Anne.
D) Floyd is entitled to recover on the note from Hema.
E) Floyd is entitled to recover on the note from Hema only if both Anne and Rahul have filed bankruptcy or are otherwise proven insolvent.
Entitlement to Payment
The legal right or claim to receive a sum of money from another party under the terms of a contract or agreement.
Promissory Note
A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.
- Attain familiarity with the standards for appropriate presentment and mandated notices concerning negotiable instruments.
Verified Answer
JM
Johnathan MondragonMay 09, 2024
Final Answer :
D
Explanation :
Floyd is entitled to recover on the note from Hema because as the issuer of the promissory note, Hema is primarily liable to Floyd, regardless of whether Anne or Rahul dishonors the payment or are insolvent.
Learning Objectives
- Attain familiarity with the standards for appropriate presentment and mandated notices concerning negotiable instruments.