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Commercial Law Keyed to Lopucki
DBA Enterprises, Inc. v. Findlay
Facts
Appellants sold their franchise to Appellees. As part of the sales contract, Appellants agreed to a covenant not to compete and Appellees agreed to pay $72,500, part of which they paid by a promissory note. The promissory note contained the following statement, “Maker’s obligation under this note is subject to the conditions recited in that Bill of Sale and Covenants not to Compete between the parties of even date.” The contract itself was silent as to the terms of the promissory note. Sometime after the sale, Appellants violated the covenant not to compete and Appellees brought suit requesting among other things, cancellation of the promissory note. Appellants counterclaimed on the promissory note, which had an outstanding balance, accrued interest, and a provision for attorney fees. The trial court found that Appellants had failed to establish the promissory note claim by a preponderance of the evidence.
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