Case Study (Forger)
Forger drafted a promissory note and forged Fred’s signature on it. Before he could do anything with it, Thief stole it and transferred it to Commercial Loan Co., for value. Commercial usually did not buy commercial paper from people who walk in off the street, but business was slow, so the company took the note. Commercial had no notice of the forgery. On the note’s due date, Commercial demanded payment from Fred. Obviously, Fred refused to pay. Commercial sues Fred on the note. Assuming the note qualifies as a negotiable instrument in all aspects not mentioned above, discuss the probable outcome of this suit.
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