Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 7

Bryce Erickson hired attorney William Bagley to represent him in a Chapter 11 bankruptcy. After the bankruptcy court dismissed his Chapter 11 proceeding, Erickson asked Bagley to represent him in a Chapter 12 bankruptcy. Bagley agreed, provided Erickson signed a promissory note payable to Sirius LC, a company co-owned by Bagley and his wife, in the amount of $29,173.38, secured by a mortgage on real property owned by Erickson. Erickson executed to Sirius a promissory note which stated, "For value received, the undersigned Bryce H. Erickson promises to pay to SIRIUS LC... the sum of Twenty Nine Thousand One Hundred Seventy Three Dollars and Thirty Eight Cents ($29,173.38)" and executed the mortgage. Sirius sued to foreclose on Erickson's real estate after he refused to pay the note when due. The court had to decide whether the note was negotiable. Was it?