Case Study:
Gentilotti, father of an illegitimate son, drew a check for $20,000 in 1969 payable to the son’s order. The check was dated July 1, 1985, but provided on the face of the check that, should Gentilotti die before that date, “this check shall be payable immediately.” Gentilotti issued the check to the son’s mother, the boy’s legal guardian and told her in the letter that accompanied the check that this was in consideration of his love and affection for the son and to make up for the fact that he could not be a good father. The son’s mother needed funds and endorsed it as the son’s guardian over to Harry’s grocery store in 1975 for a credit of $15,000 at the store, with the remaining $5,000 being Harry’s fee for the risk. Gentilotti died on July 4, 1980. The bank refused payment when Harry presented it after Gentilotti’s death, even though there were sufficient funds. Gentilotti’s executor also refused payment when the check was presented on grounds that the obligation was not yet due and on the defense of lack of consideration.
- Did the bank have the right under the UCC not to pay the check?
- Was Harry’s subject to the executor’s defenses on the note? If not, why not?
- Was the check a negotiable instrument? If so, why? If not, why not?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.