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| Baker sold goods to Abrams for $300, taking Abrams’ negotiable note in payment, with the agreement that Baker would deliver the goods immediately. Baker sold and endorsed the note to Cantrell, an innocent party, for $250 of which $50 was paid in cash and $200 was to be paid in 10 days. Baker did not deliver the goods for which the note had been given before the 10 days expired, and Abrams so informed Cantrell. Cantrell paid the remaining $200 to Baker on the 10th day as agreed. Cantrell sued Abrams for the $300. Which of the following statements is a correct legal solution or proposition? A. The total failure to deliver any of the goods constitutes a defense which will prevail even against a holder in due course. B. Cantrell can only recover $60. C. Cantrell can only recover $250. D. Cantrell can recover the full $300. |
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