27. M issued a promissory note to P which states “I promise to pay P P10,000.” The promissory note was issued in exchange for a bag of marijuana. P subsequently indorsed and delivered the said promissory note to A. Which of the following statements is correct? Group of answer choices a. A can validly collect from M if A acquired the promissory note in good faith and for value. b. A can only go after P if M will dishonor the note and only if a corresponding notice of dishonor will be given to P. c. A cannot validly collect from M if A has knowledge of the infirmity in the instrument thus making A a holder not in due course. d. A can validly collect from P because the latter violated his warranty.
27. M issued a promissory note to P which states “I promise to pay P P10,000.” The promissory note was issued in exchange for a bag of marijuana. P subsequently indorsed and delivered the said promissory note to A. Which of the following statements is correct? Group of answer choices a. A can validly collect from M if A acquired the promissory note in good faith and for value. b. A can only go after P if M will dishonor the note and only if a corresponding notice of dishonor will be given to P. c. A cannot validly collect from M if A has knowledge of the infirmity in the instrument thus making A a holder not in due course. d. A can validly collect from P because the latter violated his warranty.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
27. M issued a promissory note to P which states “I promise to pay P P10,000.” The promissory note was issued in exchange for a bag of marijuana. P subsequently indorsed and delivered the said promissory note to A. Which of the following statements is correct?
Group of answer choices
a. A can validly collect from M if A acquired the promissory note in good faith and for value.
b. A can only go after P if M will dishonor the note and only if a corresponding notice of dishonor will be given to P.
c. A cannot validly collect from M if A has knowledge of the infirmity in the instrument thus making A a holder not in due course.
d. A can validly collect from P because the latter violated his warranty.
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