A corporation borrowed money from a bank after the president negotiated the loan and signed the promissory

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A corporation borrowed money from a bank after the president negotiated the loan and signed the promissory note. On the first blank signature line of the note, the president wrote the name of the corporation. On the second such line, he signed his own name. The note was negotiated by the lending bank to the Federal Reserve Bank. The note was not paid when due, and the Federal Reserve Bank sued the corporation and its president. The president claimed that he was not bound on the note because he did not intend to bind himself and because the money obtained by the loan was used by the corporation. Is the president liable on the note? [Talley v Blake, 322 So2d 877 (La App) (non-Code); Geer v Farquhar, 528 P2d 1335 (Or)]

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Andersons Business Law and the Legal Environment

ISBN: 978-0324786668

21st Edition

Authors: David p. twomey, Marianne moody Jennings

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