COMM 393 Chapter Notes -Promissory Note
Document Summary
Mrs. caligiuri gave ,000 to her son; to start up a company to own and run a bar with other shareholders. In exchange, shareholders had to sign a promissory note in her favour. Mr. tummillo became a shareholder, and had to sign promissory note. New promissory note signed, each shareholder promising to repay 1/6 of ,000 to. Company later failed, caligiuri sued on the promissory note. Advancement of funds already been made before tummillo came to scene. Law: consideration was there said to consist in some right, interest, profit, or benefit accruing to the one party or some forbearance, detriment, loss or responsibility, given, suffered, or undertaken by the other. Application: there was consideration in that if tummillo did not sign the note, he would not have become a shareholder. Also, caligiuri"s promise not to call the note was an act of forbearance. Thus, caligiuri"s promise to forbear from demanding repayment of her son"s.
