Wanda makes a note payable to Henry in return for Henry's car.Henry negotiates the note to his cousin,Sharon,who accidentally drops it on the floor where it is swept into the garbage.What effect?
A) The note is canceled.
B) The note is ineffective.
C) The obligation is discharged.
D) The obligation is not affected.

Question

Quizplus · Accepted Answer

The obligation under the note is not affected by the physical loss of the document. The note represents a promise to pay, and its loss does not discharge the obligation created by that promise.

Wanda Makes a Note Payable to Henry in Return for Henry's