Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 3

Hargrove sold cars that were financed by loans to his customers from the First National Bank. Three customers signed promissory notes payable to the bank, and Hargrove wrote his own name on the reverse side of the notes. When the customers failed to pay the notes, the bank sued Hargrove, claiming that he had indorsed the notes. Was Hargrove's signature an indorsement? (First National Bank of Atlanta v. Hargrove, Tex. 503 S.W.2d 856)