Mark gives a bearer note for $50 to Joe in exchange for an excellent dinner at Joe's restaurant.Joe delivers the note to Sue for $50 and Sue takes it to Mark to be paid.If Mark says the note was originally written for only $5, what can Sue do?
A) Get $50 from Mark.
B) Hold Joe liable for breach of warranty.
C) Hold Joe liable for breach of contract.
D) Any of these.

Question

Quizplus · Accepted Answer

Sue can hold Joe liable for breach of warranty because when Joe endorsed and delivered the bearer note to Sue, he warranted that the note was genuine and for the amount stated. If the note was originally for only $5, Joe breached this warranty.

Mark Gives a Bearer Note for $50 to Joe in Exchange