Reichhold Chemicals, Inc. v. Replex Corp.

This controversy arose out of the following facts: During the fall of 1978 Replex Corporation (Replex) purchased some $7,750 in materials from Reichhold Chemicals (Reichhold) on account. Replex did not pay the account as it came due and on March 8, 1979, with a balance owing of $6,948.90, executed to Reichhold four promissory notes totalling the amount due. The notes were executed by Replex's vice president, John Medina (Medina), in his representative capacity.

Replex paid two of the four notes, leaving a balance due of $2,948.90, and, apparently, went out of business. The balance due remained…