1.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?

2..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?