In 2007, John Nazi executed a security agreement on behalf of the Handy Peddler in favor of
Question:
In 2007, John Nazi executed a security agreement on behalf of the Handy Peddler in favor of Jerry’s Oil. On the security agreement, John Nazi signed his name, but thereunder indicated that his title was “Manager.” A few days later, on April 2, 2007, John Nazi executed a fuel supply agreement. The alleged breach of this agreement is the central issue in this case. The fuel supply agreement required the “Retailer” to pay Jerry’s Oil for various obligations under the contract. The Retailer was defined by the contract as the Handy Peddler. On the signature block at the conclusion of the document, John Nazi executed the agreement by only signing “John Nazi.” Although the fuel supply agreement included a space for the signatory to designate his or her title, this space was left blank by John Nazi. Further, on April 20, 2007, John Nazi also executed a promissory note in favor of Jerry’s Oil. The promissory note specifically identified John Nazi “doing business as” the Handy Peddler, without any designation or title.
CASE QUESTIONS 1. Is Nazi a sole proprietor or a manager?
2. Is Nazi personally liable for the amounts under the promissory note? Why or why not?
Step by Step Answer:
Business Law And Strategy
ISBN: 9780077614683
1st Edition
Authors: Sean Melvin, David Orozco, F E Guerra Pujol