Commercial Law, 2012 Bar — Question III-A

ESSAY

X borrowed money from Y in the amount of Php1 Million and as payment, issued a check. Y then indorsed the check to his sister Z for no consideration. When Z deposited the check to her account, the check was dishonored for insufficiency of funds. Is Z a holder in due course? Explain your answer. (5%)

You can write freely without an account. Sign in to reveal the suggested answer and track your progress.