M issued a negotiable order instrument to P in exchange for 10 cows to be delivered 90 days from date of issue. P endorsed it to A, then A to B. However, P was not able to deliver the cows on the due date. A did not know about the said non-delivery, but B did. Can B seek payment from M? YES OR NO?
M issued a negotiable order instrument to P in exchange for 10 cows to be delivered 90 days from date of issue. P endorsed it to A, then A to B. However, P was not able to deliver the cows on the due date. A did not know about the said non-delivery, but B did. Can B seek payment from M? YES OR NO?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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M issued a negotiable order instrument to P in exchange for 10 cows to be delivered 90 days from date of issue. P endorsed it to A, then A to B. However, P was not able to deliver the cows on the due date. A did not know about the said non-delivery, but B did. Can B seek payment from M? YES OR NO?
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