Assignment Task 1:
Martha borrows $5,000 from Abigail on August 8. Martha signs a negotiable promissory note, making $5,500 payable to Abigail on August 8 of the following year. Abigail sells the note to Dolly for $5,200 on September 15 of the same year. Dolly sells the note to Eleanor on November 7 of the same year for $5,200. On August 10 of the same year, Eleanor seeks payment from Martha, who dishonors on August 15. Assume no additional facts.
(a) Which party, if any, is primarily liable on the note? Simply provide the name. Do not explain.
(b) By what date, if any, must Eleanor provide notice of dishonor to Dolly to preserve her claim of contract liability? Simply provide the date, if any. Do not explain.
(c) Suppose that Eleanor wishes to collect from Abigail, not Dolly. By what date, if any, must Eleanor provide notice of dishonor to Abigail to preserve her claim of contract liability? Simply provide the date, if any. Do not explain.
Assignment Task 2: Abe is the founder and sole owner of Union Resources, Inc. (UR), a Texas oil drilling company. Abe hires Grant to digitize UR's payroll. The job will take about one week. Even before Grant is to begin work on the project Abe plans to fly to San Francisco on a one-month business trip. Abe asks Grant how much Grant will charge for the services he will provide to UR. Grant replies, "Until I get into the project, I'm not sure how much work I will have to perform to digitize your payroll." Abe responds, "In that case, I'll write you a signed, blank UR check. You can fill in the sum payable when you complete the work." Abe provides Grant with a signed, blank UR check, drawn on UR's account at Gettysburg National Bank (GB). The next day he flies on United Airlines from Houston, Texas to San Francisco, California. Grant finishes the job on one week. The fair charge for the job is $40,000. Grant completes the check in the sum of $500,000. He indorses the check and sells it to Ulysses for $490,000. Ulysses does not know and has no way of knowing that Grant completed the check with a fraudulent amount. GB dishonors the check on instructions from Abe.
(a) What is the maximum amount, if anything, that Abe owes to Ulysses on the UR check? Simply provide the amount, if any, in dollars. Do not explain.
(b) Suppose that Grant gave the UR check to Ulysses free of charge. What is the maximum amount, if anything, that Abe owes to Ulysses? Simply provide the amount, if any, in dollars. Do not explain.