Does the restriction written on Manning’s promissory note make it non-negotiable despite the letter of authorization written by Manning to Brady?

business law homework

two separate activites. no required length.  NEED WITHIN 19 HOURS

 

activity 1

 

Read the following case scenario and answer the questions following.

Case Scenario:  Manning executed a $500,000 promissory note in favor of Brady.  The note stated that it could not be transferred, pledged, or assigned without Manning’s consent. In addition to the promissory note, Manning signed a letter authorizing Brady to use the note as collateral for a loan.

Later, Brady pledged the note as collateral for a $150,000 loan from ABC Bank.  Before granting the loan to Brady, ABC Bank telephoned Manning to confirm that Brady could pledge the note as collateral; Manning told ABC Bank that it was okay for Brady to use the note as collateral.

Brady eventually defaulted on the loan from ABC Bank.  ABC Bank attempted to collect on the note, but Manning refused to pay.

 1. Does the restriction written on Manning’s promissory note make it non-negotiable despite the letter of authorization written by Manning to Brady?

 2. Does Manning have any liability/obligation to ABC Bank for refusing to pay Brady’s loan?  Why or why not?

 

activity 2

1.  Write a brief scenario including an example of a negotiable instrument that is flawed in some way, that is, does not qualify as a negotiable instrument, it is nonnegotiable for some reason. Create a scenario example as if you were going to use the scenario for a class assignment.  Write in paragraph format.

2.  Explain why/how your example above is flawed and thus, not a negotiable instrument.  Write your explanation as if you were explaining and teaching the concepts to the class.  Explain clearly, fully in paragraph format.

 

You must use an in text citation(s) in your explanation above.

Answer

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