COMMERCIAL PAPER Flashcards
Lew Rider, a seventeen-year-old, signed and issued a check to the owner of a racing bicycle in payment for the bicycle. The owner properly negotiated the check to Dan Willis, in payment for repairs that Willis had performed on the owner’s residence. Willis took the check in good faith and without notice of any problems with the check. When Willis presented the check to the drawee bank for payment, he learned that Rider had placed a stop payment on the check. Willis contacted Rider in an attempt to collect on the check, but Rider, having turned 18 years old, disaffirmed his obligation as drawer of the check because he was a minor at the time he issued the check.
Can Willis collect the amount of the check from Rider?
No, because Rider disaffirmed his obligation as drawer of the check.
