National Bank of Georgia, the payee, now sues both R&A Concrete and Ament on the note. What rights does National Bank have against R&A and Ament?
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R&A Concrete Contractors, Inc., executed a promissory note that identifies both R&A Concrete and Grover Roberts as its makers. On the reverse side of the note, the following appears: “X John Ament Sec. & Treas.” National Bank of Georgia, the payee, now sues both R&A Concrete and Ament on the note. What rights does National Bank have against R&A and Ament? |
Explanation
All the companies who sign an instrument in the representative capacity can be held liable for the payment against that instrument. So, the bank has the right to hold Company R, Company A, and Company G liable for the payment against the instrument. Even though Company A signed at the back of the instrument, it will still be liable for the instrument.
Verified Answer
The bank can hold Company R as well as Company A liable for the instrument signed by both the companies.
