Author Question: If instrument is negotiable, it can be: A) paid on demand. B)cancelled by the maker. C)assigned by ... (Read 45 times)

WhattoUnderstand · **on:** Jun 24, 2018

If instrument is negotiable, it can be:
A) paid on demand.
B)cancelled by the maker.
C)assigned by contract.
D)transferred by negotiation.

Question 2

William and Joann Lieberman purchased a house with both of their names on the deed. However, the note and the mortgage for the purchase of the house had only William Lieberman's name. Following a divorce action, the lender sought to foreclose on the property. Joann Lieberman objected.

komodo7 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

D

Answer to Question 2

The court held that the lender could foreclose only on the husband's interest in the property and not the wife's because she was not a party to the debt. A valid mortgage requires an underlying debt and the signature of the party to be bound and in order to have the mortgage against the full property.