On June 1, XYZ Corp. executed a promissory note in the amount of $1 million payable to Jones Corp. for the sale of widgets that were delivered on June 1. The Note is payable in full on August 1. On June 5, XYZ Corp. notified Jones Corp. that the widgets were defective. Jones Corp. transferred the Note to Smith. On August 1, Smith presented the Note to XYZ Corp. for payment. Question: Must XYZ Corp. pay the Note? What facts would be important to know in order to answer this question?
