Commercial Law, 2012 Bar — Question 20

MULTIPLE CHOICE

As payment for a debt, X issued a promissory note in favor of Y but the promissory note on its face was marked non-negotiable. Then Y instead of indorsing the promissory note, assigned the same in favor of Z to whom he owed some debt also. Which statement is most accurate? A) Z cannot claim payment from X on the basis of the promissory note because it is marked non-negotiable. B) Z can claim payment from X even though it is marked non-negotiable. C) Z can claim payment from Y because under the Negotiable Instrument Law, negotiation and assignment is one and the same. D) Z can claim payment from Y only because he was the endorser of the promissory note.

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