Business law page 764 2&3 curity Bank sued a corporate borrower, Fastwich, Inc.
ID: 389382 • Letter: B
Question
Business law page 764 2&3curity Bank sued a corporate borrower, Fastwich, Inc. and certain guarantors of as follows: the note. The note was signed [typed] FASTWICH, INC. /s/] John J. Smith II /s/] Carolyn Smith [/s/] Gary D. Smith /s/] Cheryl J. Smith Is the corporation bound on the note? Why or why not? 3. Lee executed and delivered a promissory note, due November 1, 2007, to the plaintiff bank. The note was a consolidation of previous loans, which were in default, made to Village Homes, Inc. Lee signed the note personally. "Village Homes, Inc." does not appear anywhere on the note. Is Lee personally iatile on the note? Why or why not?
Explanation / Answer
In this specific condition there is no foundation for the cooperation on the note as the note is not properly written with any specific conditions are agreement. There is no specific sign available that could identify if the note was specifically signed by the organisation or the people involved in specific note. Limitation of this is specific note is very easy, corporation is not bound on the notice.
In this case, availability of contract has a mention of village homes Inc which makes it eligible for being liable through the company even if the contract was assigned only with his name. In this condition Lee would not be personally liable for this is specific situation.
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