On December $1,2023,$ Mr$.$ Denzel ordered one hundred modern automated home heating systems from Mendoza. As payment, Denzel gives Medoza a promissory note that states, "I, Denzel Kid, promise to pay to Mendoza Blues, the amount of Three hundred and twenty thousand dollars on or before September $10,2024."$ The note is signed and dated. $[$For purposes of this test, assume that the note is a negotiable instrument.$]$

On February $7,2024,$ Mendoza sells the promissory note to Kamala Pompey for $200,000$ dollars because Mendoza needs funds to complete Denzel's order. Mendoza indorses the note, "Pay to Kamala Pompey" and signs "Mendoza Blues".

On April $1,2024,$ Kamala gives the note to her neighbor Barack Singh. Kamala indorses the note, by signing her signature "Kamala Pompey".

On May $1,2024,$ Barack gives the note to his son Bob, as a birthday present. Barack indorses the note by writing "without recourse" and signing his name.

On June $25,2024,$ Bob presents the note to Denzel Kid for payment. Denzel refuses to pay the note. Denzel advises Bob that he is not going to pay the note because Mendoza breached the contract since out of the one hundred automated home heating systems that Mendoza delivered, only $20$ were functional and had to be modified before installation. The other $80$ were completely faulty. Denzel advised Bob that he sent the $80$ faulty automated home heating systems back to Mendoza on March $1,2024.$ Denzel refused to pay to Bob the $320,000$ dollars stated in the promissory note.

ANSWER THE FOLLOWING QUESTIONS about the above Scenario: $($DO NOT RESTATE the question. Just place the question number at the start of your answer to each question.$)$

What is the legal significance of the words in Mendoza$$s indorsement to Kamala. $(10$ pts$).$

What is the legal significance of the words in Kamala$$s indorsement to Barack. $(10$ pts$).$

What is the legal significance of the words in Barack's indorsement. $(5$ pts$).$

State and explain the legal concepts that govern the issue of whether Denzel is required to pay Bob the $320,000$ dollars stated in the promissory note. $($Using terms that we have discussed in this unit, fully explain your answer. $(20$ pts$).$

Apply the legal concepts that you just explained to the facts of this scenario and answer the question of whether Denzel is legally required to pay the $320,000$ dollars to Bob. $(5$ pts$).$