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

Exercise 10

Hartford Packing Company Inc. (Hartford) bought tomatoes from Luellen Farms Inc. (LFI). Hartford owed LFI $225,000 for tomatoes, John Jackson, the owner and president of Hartford, signed a note for the amount to memorialize the debt A month later, Hartford went out of business, leaving $170,000 unpaid on the note. The note stated it was in renewal of a note described in a specific mortgage. It also said, "All covenants and agreements in said mortgage contained shall apply to this renewal note." There was no such mortgage. LFI sued Hartford and Jackson personally for payment of the note. For Jackson to have personal liability, the note had to be negotiable. Was it?