Question

William promised to sell Helen's car for her, but he wanted a commission of 10%. Helen signed an instrument promising to pay William a 10% commission if he sold her car. William assigned the agreement to Phil. Helen's car was sold and the buyer paid Helen. A dispute ensued between Helen and William regarding whether William found the buyer or the buyer found Helen. When Phil asked Helen for payment on the instrument, Helen refused. William, Helen, and Phil settled their dispute without going to court, and Helen wrote Phil a check for $3,000. Phil endorsed the check on the back, planning to take it to the bank the next day. Unfortunately, Phil lost the check and it was found by Barry, who cashed it at the local bank. Barry then left town.

A. Is the instrument signed by Helen promising to pay William a 10% commission if he sold her car negotiable? Explain.

B. What is the most likely result if Phil attempts to compel the bank to reimburse him for the value of the check cashed by Barry?

Answer 1

A) Yes it is an negotiable Instrument as it promises to pay a specific amount of money, either on demand, or at a set time, whose payer is usually named on the document and it fulfill definition of Negotiable Instrument.

B) Phil can sue on Barry or he can complaint to relevant authority for this but he can not go back to Helen's for reissue of check