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Reference no: EM13300275

Bridezilla Wedding Planning issued two checks totaling $150,000 to BabyCakes Bakery for wedding cakes it had purchased. BabyCakes Bakery endorsed the checks over to the law firm of Shark & Shyster as payment for a retainer. BabyCakes Bakery, soon after, collapsed as a business, and Bridezilla Wedding Planning stopped payment on the check because not all of the cakes had been delivered. Shark & Shyster claimed it was a holder in due course and entitled to payment. In the meantime, a local equipment provider claimed its interest in the checks for unpaid bakery equipment. The equipment provider asserted that Shark & Shyster was not a holder in due course because it had not given value for the checks. Is the law firm of Shark & Shyster a holder in due course? Why or why not?

Reference no: EM13300275

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