Will issued a $2,700 promissory note made payable to himself by signing Kay’s na

Question

Will issued a $2,700 promissory note made payable to himself by signing Kay’s name. Will endorsed the note and gave it to Brian as repayment for a loan. Brian then delivered the note to Anh for the purchase of her office furniture. After signing the note, Anh transferred the note to Fran who had performed interior design work for Anh. Roth accepted the note from Fran for upholstery work he had done. Roth presented the note to Kay for payment. When Kay refused to pay the note, Roth decided to demand payment of $2,700 from the other parties to the note. Will cannot be located. Describe in detail the liability of the earlier parties for the payment of the $2,700 claim by Roth

Explanation / Answer

In the absence of a contract to contrary ,Maker of Promissory note is liable for payment of note at maturity .In case maker fails to make a payment on due date ,the immediately preceeding party is liable for same.

In the given case ,The Roth can demand payment from kay (the maker of promissorty note on presentment) .In case if kay failsl to make payment ,he can held liable Fran for non payment .

Roth in a given case cannot held liable other parties as there is no contract or transaction between roth and other parties.

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