1. Please describe fully two examples of how Article 2 differs from old contract law with regard to contract formation.

2. On February 25, 2012, Truman executed a promissory note for $100,000.00 payable to Ward The Home Builder (Ward). The note was payment of contract pursuant to which Ward to build a house for Truman.

Upon receipt of the note from Truman, Ward indorsed the note and gave possession to a third party, Pomera, which paid Ward $95,000. As a consequence of this transfer, Truman was to make payments on the note to Pomera.

Subsequently, Ward breached the contract with Truman by failing to properly build the house. As a result of Wards breach, Truman refused to make payments on the note to Pomera arguing that his defense against Truman (breach of contract) excused him from paying Pomera.

A. What do we need to know about the promissory note in order to determine whether is is in fact a negotiable instrument?

A. If we assume that Pomera is a holder in due course, what would be the outcome if Pomera sued Truman for payment? Please explain fully.

B. What would we need to know about Pomera to truly determine whether she is a holder in due course? Please explain the rationale behind these requirements.