COMM 393 Lecture Notes - Lecture 7: Promissory Note
Document Summary
Plaintiff, mrs. caligiuri, gave 000 to her son so that he could, with other shareholders start up a company to own and run a bard. In exchange for 000, caligiuri required the company and each shareholders to sign a promissory note promising to repay 1/6th of the 000 to caliguiri on demand. When the company failed, caliguiri sued on the promissory note. Application: when tummillo signed his promissory note in exchange for him to become a shareholder. And if the shareholders were not prepared to become personally responsible, caliguiri would have called the note. Her promise not to call the act was an act of forbearance. Result: consideration exists (2) whether there was proper consideration give in exchange for a promissory note. Law: chitty on contracts: consideration need not move to the promisor. While the consideration must move from the promisee, it need not move to the promisor.
