Al purchased a car from Honest Bob’s Cars for $700. Al paid $200 in cash and signed an installment contract for $500, which in its entirety stated: January 15, 2018 I promise to pay to the order of Honest Bob’s Cars the sum of $500 in ten equal installments. (signed) Al Honest Bob’s negotiated the instrument to Tom, who took it for value and in good faith. After Al had paid two installments, the refrigerator ceased operating and Al wishes to recover his down payment and first two monthly payments and to discontinue further payments. What result?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 34P
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2. Al purchased a car from Honest Bob’s Cars for $700. Al paid $200 in cash and signed an installment contract for $500, which in its entirety stated: January 15, 2018 I promise to pay to the order of Honest Bob’s Cars the sum of $500 in ten equal installments. (signed) Al Honest Bob’s negotiated the instrument to Tom, who took it for value and in good faith. After Al had paid two installments, the refrigerator ceased operating and Al wishes to recover his down payment and first two monthly payments and to discontinue further payments. What result?

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