Week 3 Assignment

Week 3
Chapter 22.10 Referring to the mortgage in the note makes it to be non-negotiable. Holly Hill acres, Ltd. committed themselves to pay Rogers and Blythe through a promissory note and purchase money mortgage. This implies that whereas Charter Bank did not deal directly with Holly Hill acres, Ltd., they had every right to sue them since Rogers and Blythe effectively committed to pay the loan and offered Holly Hills promissory note as collateral. (Daniel F. Hinkel, 2008) Charter Bank has to go every extent

to recover its loan from Rogers and Blythe and in this perspective, Holly Hill acres has to bear the brunt literally speaking. Under normal circumstances, it is not expected that a lender sues any third party but in this instance, the reference to the mortgage in the note seals the fate of Holly Hill. Chapter 23.8 The Angelinis wins the case. When General was entering into an agreement, they knew for sure that Lustro was not only nearly insolvent but also that they had engaged in questionable business practices in the past. It is not legal to enter into a business agreement, more so a promissory note, with a dubious company. This means that General should bear full responsibility of entering into a dubious deal. (Daniel F. Hinkel, 2008)

Week 3 Assignment Lustro on the other hand did breach the law by assigning the note to General way before it had even matured. Its totally inexplicable on the side of Lustro to use the note a mere 10 days after it was signed. Its totally unjust to lay fault on the Angelinis since the terms and conditions of the note we not followed accordingly.

Chapter 24.13 Five Star Solar Screens Company did not act ethically act ethically in this case. This is due to the fact that they never lived up to fulfill the agreement they had with the Mahaffeys and to rub salt on to the wound, they blatantly sold the installment note to Mortgage Finance. The Mahaffeys

can successfully assert the defense of breach of contract by Five Star against the enforcement of the note by Mortgage Finance. In the defense, the Mahaffeys can refer to the terms and conditions of the agreement they had with Five Star whereby the company did a shoddy job at their home. There is enough evidence to prove this as shown by the major defects of the insulation system that Five Star installed in the Mahaffeys home. Chapter 27.2 In this case, World Wide wins. This is because the Bank should have carefully the financial and asset base of Metropolitan before entering into a loan agreement. When World Wide entered into a deal with Metropolitan, the security agreement and financial statement was in their (World Wide) favor.

Week 3 Assignment (Daniel F. Hinkel, 2008). Whereas the Bank has every right to file a counterclaim asserting its interest in Metropolitans account, priority must be given to World Wide and therefore they are the winners in this case.

Week 3 Assignment Reference: 1. Daniel F. Hinkel (2008), Essentials of real estate practical law, Delmar learning.