Legal Question in Business Law in California

do I have to pay off a 30% promissory note?

I bought a company where the previous owner signed a 30% interest rate promissory note to a freind of his. Do I have to pay it? or what can I do?


Asked on 10/14/08, 3:35 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: do I have to pay off a 30% promissory note?

I'd investigate to see if it was an actual loan, or a set you up situation. Was it disclosed in the sale documents? Did you bother to get a written sale agreement? Private loans generally aren't enforceable at such usurious rates, so you have several possible defenses, and could counterclaim against the seller if you are sued. Feel free to contact me for the legal help you'll need in this.

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Answered on 10/14/08, 4:20 pm
James Obecian law office san diego

Re: do I have to pay off a 30% promissory note?

You would have to defend a non-payment in the event a suit has been filed, you would have the opportunity to assert the defense of usurous interest rate, and assert any other claims you may have. Contact me directly.

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Answered on 10/14/08, 6:23 pm


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