Reference no: EM131386867
On December 2, 2010, Miles executed and delivered to Proctor a negotiable promissory note for $1,000, payable to Proctor or order, due March 2, 2011, with interest at 14 percent from maturity, in partial payment of a printing press.
On January 3, 2011, Proctor, in need of ready cash, indorsed and sold the note to Hughes for $800. Hughes paid $600 in cash to Proctor on January 3 and agreed to pay the balance of $200 one week later, namely, on January 10.
On January 6, Hughes learned that Miles claimed a breach of warranty by Proctor and, for this reason, intended to refuse to pay the note when it matured. On January 10, Hughes paid Proctor $200, in conformity with their agreement of January 3.
Following Miles's refusal to pay the note on March 2, 2011, Hughes sues Miles for $1,000. Is Hughes a holder in due course? If so, for what amount?
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