Legal Question in Business Law in Texas

promissory note

a salesman showed kellerman seveal samples of flooring, Kellerman selected the one that he liked best and then asked if the flooring was warranted against finsh deterioration under heavy traffic. The salesman said that it was.Lahaina Floors , Inc and kellerman signedthe contractand the wood floors were installed.After the installation was completed, Kellerman signed a promissory nott twhich read 'Brian Kellerman promises to pay to order of Lahaina Floorss, Inc. the sum of $5,000 sixty days from this date:. Two day later, Lahina Floors negotiated this note to Royal Hawaiian Bank in exchange for $5,000. ABOUT 6 Weeks after the flooring was installed,Kellerman nooticed that the varnish was peeling off in several areas. He contacted the flooriing com. but despite repeated assurances that they world sennd someone to look a it, they had done nothing for Kellerman 2 weeks later, when Royal Bank presented the note to Kellerman for payment. Will Kellerman have to pay the bank? wHY OR WHY NOT? If so, what can he then do? If so, what can he then do? If not,what can the bank do?


Asked on 5/30/02, 10:09 am

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: promissory note

The promissory note is what is referred to as commercial paper. It can be freely bought and sold. Kellerman will have to pay the bank on the note; he has no defenses against the bank. If he fails to pay the bank, he may be sued for the principal value, court costs, attorney fees and interest.

Kellerman can sue Lahaina Flooring for breach of warranty, since the flooring did not perform as they had promised.

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Answered on 5/30/02, 10:36 am
Bradford Downs Bradford K. Downs, Jr. Attorney at Law

Re: promissory note

Kellerman does not have any defenses to the note as to the bank and is obligated to pay the note. However, Kellerman may have a good claim against the flooring company and/or the installer of the floor for breach of warranty, deceptive trade practices, and breach of contract. If successful against the flooring company or installer on the DTPA claim, Kellerman could receive up to three times his actual damages, plus attorney's fees and court costs.

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Answered on 5/30/02, 11:20 am


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