On August 17, 1979, Sandra McGuire and her husband entered into a contract to purchase the inventory,
Question:
On August 17, 1979, Sandra McGuire and her husband entered into a contract to purchase the inventory, equipment, accounts receivable, and name of “Becca’s Boutique” from Pascal and Rebecca Tursi. Becca’s Boutique was a clothing store owned as a sole proprietorship by the Tursis. The McGuires agreed to purchase the store for $75,000, with a down payment of $10,000 and the balance to be paid by October 5, 1979. The promissory note signed by the McGuires read: “For value received, Thomas J. McGuire and Sandra A. McGuire, husband and wife, do promise to pay to the order of Pascal and Rebecca Tursi the sum of $65,000.” Is the note an order to pay or a promise to pay? P.P. Inc. v. McGuire, 509 F. Supp. 1079 (D.N.J. 1981).
- Is the note an order to pay or a promise to pay?
- Explain your rationale.
- Could you have used other negotiable instruments in this case? Why or why not?
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt