On September 1st- Alan sells Barbara a Picasso sketch- Barbara signs.pdf

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On September 1 st , Alan sells Barbara a Picasso sketch. Barbara signs a promissory note payable to Alan for $300,000 on November 1st. However, Alan knows that the sketch is a reproduction, not an original. Alan then sells the promissory note to Clarissa for $250,000 on October 1 st . Clarissa does not know that the sketch is not an original. On October 2 nd , Clarissa gives the note to her husband Donald for his birthday. Donald is friends with Alan and knows that the sketch is a reproduction. 1. Is Donald technically a holder in due course? Why or why not? 2. Is Donald entitled to collect on the note from Barbara and, if so, how much? Explain your answer..

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