There are two components to this week’s homework.

1.The following scenario addresses potential contractual disputes involving a contract for a nonprofit organization. Please read carefully and complete a written assignment as directed below:

Gerard, an events promoter and coordinator, promises to stage a concert for the benefit of Kids Care, a charitable organization dedicated to helping disadvantaged youth. In reliance on the anticipated receipts, Kids Care contracts for the construction of a residence for homeless teens. After the concert, Gerard tells Kids Care that he has decided not to donate the receipts to the organization. Is Gerard’s promise enforceable despite the lack of consideration? Explain. This portion of your assignment should be 1/2-1 page in length.

2.Now suppose that you go to your bank and write a check on your account payable to cash for $500. The teller gives you the cash without asking you to indorse the check. After you leave, the teller slips the check into his pocket. Later, the teller delivers it (without an endorsement) to his friend Carol in payment for a gambling debt. Carol takes your check to her bank, indorses it, and deposits the money. Discuss whether Carol is a holder in due course. This portion of your assignment should be 1/2-1 page in length.

You will be assessed on the rationale you use in addressing the questions/issue posted, and how well you justify your argument regarding the issues. Your response must be thought provoking, have well developed ideas and/or opinions, and should reference any supporting material from the text, lecture or other sources you have used to complete the assignment.

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