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Commercial Law Keyed to Whaley
Nichols v. Seale
Citation:
493 S.W.2d 589 (1973)Facts
Defendant signed a promissory note to repay a loan. The promissory note was on a printed form beginning, “I, we or either of us” and was signed with the assumed name of Defendant’s business, The Fashion Beauty Salon. Defendant’s registered business ‘s name was Mr. Carls Fashion, Inc., but he had been doing business as the previously mentioned assumed name. The note also contained Defendant’s name, Carl V. Nichols, in typewriting as well as his handwritten signature underneath the typewriting. Plaintiff, the payee on the note, sued Defendant, claiming that Defendant had signed the note in his individual capacity and thus was personally liable. Plaintiff contended that Defendant was liable under UCC §3-402(b) because the note neither named the corporation, Mr. Carls Fashion, Inc., nor did it show that Defendant signed in a representative capacity. Defendant argued that extrinsic evidence should be admissible to show that The Fashion Beauty Salon was an assumed name and thus the represented person was named in the instrument as required by UCC §3-402(b).
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