Legal Question in Business Law in California
''promisory''
In the state of California, how binding is a promissory
note drafted by an owner of certain business related
inventory for purchase by a second party?
1 Answer from Attorneys
Re: ''promisory''
A promissory note signed by the maker and in reasonably standard format is usually 100% enforceable by the payee (or in some cases a holder in due course) against the maker. There are a few technical requirements, but in most cases a court would enforce the note without much concern for the reasons the note was given, i.e. the fact that the drafter was selling the maker his business inventory.
On the other hand, there are defenses to enforcement of a promissory note, which could include fraud, or defects appearing on the face of the note.
You should explain the circumstances and show the note to a lawyer who can evaluate why you think the note is not legitimately payable by the maker.
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