Commercial Law, 2011 Bar — Question 30

MULTIPLE CHOICE

D, debtor of C, wrote a promissory note payable to the order of C. C's brother, M, misrepresenting himself as C’s agent, obtained the note from D, then negotiated it to N after forging C's signature. N indorsed it to E, who indorsed it to F, a holder in due course. May F recover from E? A) No, since the forgery of C's signature results in the discharge of E. B) Yes, since only the forged signature is inoperative and E is bound as indorser. C) No, since the signature of C, the payee, was forged. D) Yes, since the signature of C is immaterial, he being the payee.

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