10 points QUESTION 5 1. Bob wrote a cheque payable to his plumber, Fred. Fred owed
money to his ex-wife Frieda, so he signed the cheque over to her. Later, Frieda signed the cheque over to her children ' s daycare. Meanwhile Bob was unhappy with the plumbing job done by Fred. Fred would not answer his calls but Bob found out that the daycare had his cheque. Fred went to the daycare and demanded a refund. Which of the following is true? a None of the. b The cheque. c The cheque. above is true.
was an equitable assignment. does not satisfy the requirement of writing for
assignments. d The daycare is holder of a negotiable instrument in due course. and can ignore Bob. e This is an example where privity does not allow conferral of a. benefit on the daycare, a third party to the contract between Bob and Fred.