The textbook required is – Dynamic Business Law-The Essentials 3rd Edition, McGraw-Hill. In your textbook, please read Chapter 17, Negotiable Instruments: Negotiability and Transferability pages 331-358. Answer the following problem, briefly explaining your answer. Manley issued a $20,000 negotiable note to Preston to pay for a parcel of land. Preston misrepresented to Manley that the parcel contained 50 acres, when in fact it contained only 40 acres. Preston negotiated the note to Carl. Carl paid Preston $20,000 for the note, and he took it without notice of Preston`s fraud. Later, Carl negotiated the note to Ned who knew that Manley claimed that he had been defrauded. 1. Is Carl a holder in due course? 2. Manley`s defense of fraud is what type of defense? 3. Can Manley assert this defense against Ned?

The textbook required is – Dynamic Business Law-The Essentials 3rd Edition, McGraw-Hill. In your textbook, please read Chapter 17, Negotiable Instruments: Negotiability and Transferability pages 331-358. Answer the following problem, briefly explaining your answer. Manley issued a $20,000 negotiable note to Preston to pay for a parcel of land. Preston misrepresented to Manley that the parcel contained 50 acres, when in fact it contained only 40 acres. Preston negotiated the note to Carl. Carl paid Preston $20,000 for the note, and he took it without notice of Preston`s fraud. Later, Carl negotiated the note to Ned who knew that Manley claimed that he had been defrauded. 1. Is Carl a holder in due course? 2. Manley`s defense of fraud is what type of defense? 3. Can Manley assert this defense against Ned?