Sally buys a house from Carl, who warrants that the house is in good condition. Sally is able to put down 40% and signs a promissory note to pay the rest to Carl. Carl transfers the promissory note to Ryan. Sometime after the transfer Sally finds out that the house may collapse due to excessive termite and rat damage. In turns out that Carl had forged the inspection reports stating that the house was in good condition. What are the claims of the parties if Ryan is a holder in due course? Does your answer change if Ryan is a mere holder ? How do we know if Ryan is a holder in due course?
Business homework help needed!!?
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