1.Grayson wrote out a promissory note to Holly. In the promissory note, Grayson stated that he would pay Holly $275 as soon as Grayson sold his Mini Cooper. Grayson initialed the note instead of signi

1.Grayson wrote out a promissory note to Holly. In the promissory note, Grayson stated that he would pay Holly $275 as soon as Grayson sold his Mini Cooper. Grayson initialed the note instead of signing his first and last name. The promissory note also included a statement that it would be payable in five months, but the note was not dated. 

 Discuss the elements of negotiability and whether each one has been met. Then declare whether the note is negotiable.

2.Sally landed a job in the accounting department of Thyme Life Biscuit Company.  On her fourth day on the job, Joe, her boss had to leave work unexpectedly. Joe usually prepared the bank deposit at the end of each business day, but on this day, Sally needed to prepare the bank deposit.

There were 54 checks to be deposited. Sally used the stamp provided by her employer and indorsed 52 checks with the stamp "Thyme Life Biscuit Company." Some of the checks stuck together and two of those checks were not indorsed. The bank received the deposit and noticed the lack of indorsement on the two checks. What are the effects of the lack of indorsement on the two deposited checks?

In addition, one of the checks that Sally had stamped and was to be included with the deposit was lost in the bank parking lot. Paul found that lost check and deposited it into his personal account. What are the effects of Thyme Life Biscuit Company's indorsement on the lost checks?  

3. Irma issued a negotiable promissory note to her Certified Public Accountant (CPA) in return for the CPA's promise to prepare and file her business taxes.  The CPA never prepared for filed Irma's business taxes, but quickly negotiated the note to Ann, a holder in due course.

Meanwhile, Ann and Mary were involved in business negotiations and Ann offered to purchase business equipment from Mary. Ann offered, as part payment for the business equipment, the note issued by Irma.

By coincidence, Mary knew both Irma and the CPA, and the facts concerning the note and the unperformed accounting services. Despite this, Mary accepted a negotiation of the note from Ann.

Mary presented Irma with the promissory note and asked for payment on the note. Irma refused to pay. Mary eventually sued Irma to collect. What is the probable outcome?

4. Heather, an interior designer, bought a house and immediately made plans to make updates. Heather decided she would give the house an "open look" by having five sets of French doors opening from the back of the house onto a large patio. The doors were expensive, and Heather financed the purchase price of the doors by issuing a promissory note to the door manufacture. The door manufacturer sold the promissory note to a bank. A week after the promissory note matured, the doors began falling apart - they would not close properly, when it rained they leaked, etc. Heather refused to pay on her promissory note and brought action against the door manufacturer for breach of contract.

Will the bank recover on the promissory note?