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Defenses and limitations

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Defenses. Niles sold Kennedy a small motorboat for $1,500, telling Kennedy that the boat was in excellent condition. Kennedy gave Niles a check for $1,500 which Niles indorsed and gave to Frazier for value. When Kennedy took the boat for a trial run, she discovered that the boat leaked, needed to be painted, and required a new motor. Kennedy stopped payment on her check, which had not yet been cashed. Niles had disappeared. Can Frazier recover from Kennedy as a holder in due course? Discuss. (See Defenses and Limitations.)

Reference no: EM133472718

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