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McEnolly purchased a refrigerator for his home from Perrault Appliance Store for $700. McEnolly paid $200 in cash and signed an installment contract for $500, which in its entirety stated:
January 15, 2010 I promise to pay to the order of Perrault Appliance Store the sum of $500 in ten equal monthly installments. (signed) McEnolly Perrault negotiated the installment contract to Hughes, who took the instrument for value, in good faith, without notice of any claim or defense of any party, and without question of the instrument's authenticity.
After McEnolly had paid two installments, the refrigerator ceased operating, and McEnolly wishes to recover his down payment and first two monthly payments and to discontinue further payments. What outcome?
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