Question

Handy Manny decided that it was time to remodel his home. Among the features that Handy had included in his remodeling plan was the addition of several very large picture windows. Because of the great expense of the windows, Handy financed the cost through the issuance of a promissory note. The manufacturer of the windows sold the promissory note to a bank. Just after the promissory note matured, the windows began to leak badly. Handy refused to pay on his promissory note and brought action against the manufacturer on breach of contract. Will the bank recover on the promissory note?

Answer 1

• Promissory note is a negotiable instrument which basically expresses a promise to pay a certain amount on due date or maturity by drawer or person who makes promise without any further condition.
• it is debt instrument which is bounding on drawer/payer on maturity to pay certain amount as mentioned in promissory note.
• Further if the holder of promissory note sold the promissory note before maturity of promissory note after endorsing or issuing the instrument in favour of bank for early recovery of amount then the bank has also the same right as available to drawee/payee.
• Therefore, in present case, bank can recover amount of promissory note on due date with Handy. Promissory note contains an unconditional promise to pay, o on maturity, Handy has no option to claim that there is a breach of contract and he is legally bound to pay the amount to bank.