As a Vice President of Printers R Us, LLC, you are consulting with your employee (Mr. Bi G. Blockhead) who tells you the following: Blockhead tells you that in February 2008, he sold his printing business to Phyllis Web for $70,000. The first $10,000 of the purchase price was paid in cash at the closing and the remaining $60,000 was evidenced by a promissory note payable over five years. Blockhead tells you that at the closing, he and Webb agreed orally that if Webb could not make the payments under the note, Blockhead could "take back" the business, including the printing presses sold to Webb at the closing and the inventory on hand at the time of the default. Blockhead also tells you that Webb is two months past due on the note and that he would like to resume ownership and control of the printing business. The remaining principal balance of the note is $22,000. At your request, Blockhead brings to you copies of all the documents signed at the closing, which are as follows: (1) A bill of sale from Blockhead to Webb, covering all assets located at Blockhead Print Shop, including, without limitation, printing presses and inventory; (2) A promissory note from Webb to Blockhead providing for 60 equal monthly payments of principal in the amount of $1,000, together with interest accrued thereon at the rate of 8% per annum; and (3) a letter from Webb to Blockhead confirming that is she (Webb) defaults, then Block may retake the printing press. Respond to the following:

Blockheads asks: If he may lawfully recover the presses from Webb. What is the proper response:

Blockhead may not recover the press because there was no legally valid contract allowing him to recover

Blockhead may not recover the press because he has no security interest.

Blockhead may recover the press because of the contract allowing him to recover

Blockhead may recover the press because of the memorandum allowing him to recover

Priority is the right to have the value of the collateral applied to the creditor's own debt when the value of the collateral is insufficient to pay everyone. Explain why this is true or false.