Legal Question in Business Law in Virginia

Husband enters into joint promissory note and loans money without wife's signatu

A promissory note was drafted to allow a husband and wife to enter into an agreement with a startup business. The agreement consisted of the husband and wife providing startup money to a business in exchange for free services, and loan repayment with interest. The note went through several revisions but ultimately the husband and the business owner signed a previous revision and the loan money exchanged hands. The wife never signed this note although her name is on the note and there is a signature block for her to sign. The wife thinks the final revision of the note was agreed to and signed by her husband but finds out several weeks later that is not the case. The revision of the note that was signed by her husband and the business owner was a revision she was opposed to. She would like out of the agreement and to get her investment money back. Does she have any recourse?


Asked on 6/10/03, 10:34 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Husband enters into joint promissory note and loans money without wife's sig

If husband lent the money, husband is entitled to repayment by the borrower in accordance with the terms of the agreement/note, but not immediate repayment unless the note provides for it. Wife is probably entitled to no greater rights, and may not be entitled to repayment at all (if the loan was made by husband only). Depends on the terms of the agreement. However, any fraud or misrepresentation may change this result.

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Answered on 6/11/03, 9:57 am


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