
10. To hold a secondary party liable the following conditions must be met (1) the
instrument must be properly presented to the drawee or party obligated to pay
the instrument, and payment must be demanded (2) the instrument must be
Cases for Analysis
1. No. Unless ratified, an unauthorized signature (well, let’s call it what it really is, a forgery) does
2. No. The bank was not a holder in due course, because without a valid indorsement of
3. Yes. To be negotiable, an instrument must contain the words of negotiability Pay to the order of
or Pay to bearer. This instrument lacked the words of negotiability. Since it was not negotiable, the
transfer by Great Lake Nursery Corporation to First Investment Company was an assignment rather
4. Yes. A holder in due course takes an instrument free from all defenses of any party to the
5. Yes. Fraudulent misrepresentation that induces the execution of an otherwise valid contract
6. When this case was decided, the UCC said that a telephone call is not a proper presentment. UCC