Tunisia sold to Ireland a Rolex watch for Php5,000,000.00. Ireland then issued a promissory note to Tunisia promising to pay the money within 90 days. Unknown to Tunisia and Ireland, a law was passed a month before the sale that prohibits and declares void any agreement to sell Rolex in the country. If Denmark acquired the note in good faith and for value, may he enforce payment on it? a. No, since it was not Denmark who bought the Rolex. b. Yes, since he is a holder in due course of a note which is distinct from the sale of Rolex. c. Yes, since he is a holder in due course and Tunisia and Ireland were not aware of the law that prohibited the sale of Rolex. d. No, since the law declared void the contract on which the promissory note was founded.
Tunisia sold to Ireland a Rolex watch for Php5,000,000.00. Ireland then issued a promissory note to Tunisia promising to pay the money within 90 days. Unknown to Tunisia and Ireland, a law was passed a month before the sale that prohibits and declares void any agreement to sell Rolex in the country. If Denmark acquired the note in good faith and for value, may he enforce payment on it? a. No, since it was not Denmark who bought the Rolex. b. Yes, since he is a holder in due course of a note which is distinct from the sale of Rolex. c. Yes, since he is a holder in due course and Tunisia and Ireland were not aware of the law that prohibited the sale of Rolex. d. No, since the law declared void the contract on which the promissory note was founded.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tunisia sold to Ireland a Rolex watch for Php5,000,000.00. Ireland then issued a promissory note to Tunisia promising to pay the money within 90 days. Unknown to Tunisia and Ireland, a law was passed a month before the sale that prohibits and declares void any agreement to sell Rolex in the country. If Denmark acquired the note in good faith and for value, may he enforce payment on it?
a. No, since it was not Denmark who bought the Rolex.
b. Yes, since he is a holder in due course of a note which is distinct from the sale of Rolex.
c. Yes, since he is a holder in due course and Tunisia and Ireland were not aware of the law that prohibited the sale of Rolex.
d. No, since the law declared void the contract on which the promissory note was founded.
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