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Valid negotiable bearer note

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Reference no: EM133199720

An otherwise valid negotiable bearer note is signed with the forged signature of Darby. Archer, who believed he knew Darby's signature, bought the note in good faith from Harding, the forger. Archer transferred the note without indorsement to Barker, in partial payment of a debt. Barker then sold the note to Chase for 80 percent of its face amount and delivered it without indorsement. When Chase presented the note for payment at maturity, Darby refused to honor it, pleading forgery. Chase gave proper notice of dishonor to Barker and to Archer.

  1. Can Chase hold Barker liable? Explain.
  2. Can Chase hold Archer liable? Explain.
  3. Can Chase hold Harding liable? Explain.

Reference no: EM133199720

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