promissory note and bill of sale
If I have a promissory note that specifies an amount due of $50,000 but equal payments in the amount of $500.00 due on a specific day of the month with 0% interest for one year until the note is paid in full a year from the date of the document, and does not specify a balloon payment, is the promissory note valid for $50,000? Or $6000.00 as the payments would total? Also if the promissory note is in connection with a bill of sale for an automobile and the bill of sale states that the property is free of all claims and offsets of any and all kinds, fee from all encumbrances whatsoever, but there is an outstanding loan against the vehicle that is not assumable, is the bill of sale valid? as title can not be transfered?
Re: promissory note and bill of sale
Looks like you bought a vehicle but didn’t receive title because it was encumbered by a loan. Right? If so, and if receiving title free and clear of all liens was part of the deal, you may have grounds for rescission (to unwind the deal). Otherwise, you may have a right to damages against the seller for the amount of the loan. Or, you have a right to offset the amount which you owe the seller for the amount of the loan.
The promissory note is likely for $50k. What was it supposed to be? If there is any ambiguity, the intent of the parties will prevail.
Daniel Harrison
Berger Harrison, APC
2700 Pacific Coast Hwy., Suite 200
Newport Beach, CA 92663