7. Which of the following provisions contained in an otherwise negotiable instrument will cause it to be nonnegotiable? a. It is payable in Mexican pesos. b. It contains an unrestricted acceleration clause. c. It grants to the holder an option to purchase land. d. It is limited to payment out of the entire assets of a partnership.
7. Which of the following provisions contained in an otherwise negotiable instrument will cause it to be nonnegotiable?
a. It is payable in Mexican pesos.
b. It contains an unrestricted acceleration clause.
c. It grants to the holder an option to purchase land.
d. It is limited to payment out of the entire assets of a partnership.
17. Industrial Factors, Inc., discounted a $4,000 promissory note, payable in two years, for $3,000. It paid $1,000 initially and promised to pay the balance ($2,000) within 30 days. Industrial paid the balance within the 30 days, but before doing so learned that the note had been obtained originally by fraudulent misrepresentation in connection with the sale of land which induced the maker to issue the note. For what amount will Industrial qualify as a holder in due course?
a. None because the 25% discount is presumptive or prima facie evidence that Industrial is not a holder in due course.
b. $1,000.
c. $3,000.
d. $4,000.
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