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)Hold Joe liable for breach of warranty.
B)Get $50 from Mark.
C)Hold Joe liable for breach of contract.
D)Any of the above.

Question

Quizplus · Accepted Answer

Sue can hold Joe liable for breach of warranty, as Joe is the one who sold the note to her and warranted that it was genuine and free from any defects. Joe will be responsible for any damages resulting from the breach of warranty. Mark's claim that the note was originally written for only $5 is an issue between him and Joe, and does not affect Sue's rights to rely on the note as a valid instrument. Sue can still collect the $50 from Joe, and Joe can then seek recourse from Mark.

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