EXERCISE

Front:

To Xander:

Pay to order of Yasmin.

Sgd. Walter

Back

Sgd. Xander

Sgd. Zeus

Sgd. Anne

Sgd. Beth

I. PARTIES OF THE INSTRUMENT

1. Who are the parties of the bill?

2. What are their specific roles (drawer, indorser, etc.)?

II. LIABILITIES OF THE PARTIES

1. Xander was insolvent.

a. Can Beth recover from Anne? Explain.

b. Can Beth recover from Zeus? Explain.
c. Can Beth recover from Walter? Explain.

2. Walter’s signature was forged.

a. Can Beth recover from Anne? Explain.

b. Can Beth recover from Zeus? Explain.
c. Can Beth recover from Xander? Explain.

3. Xander is insane.

a. Can Beth recover from Anne? Explain.

b. Can Beth recover from Zeus? Explain.
 c. Can Beth recover from Xander? Explain.
d. Can Beth recover from Walter? Explain.

4. Zeus alleged that he is only signing as an agent.

a. Can Beth recover from Zeus? Explain.

b. Can Anne recover from Zeus? Explain.

5. If Walter upon signing put the phrase: “without recourse”

a. Can Beth recover from Anne? Explain.

b. Can Beth recover from Zeus? Explain.
c. Can Beth recover from Xander? Explain.
d. Can Beth recover from Walter? Explain.