Swanson v. Skiff

Opinion

REYNOSO, J.

The trial court ruled that defendants were obligated to pay on a promissory note they executed. They argue that there was no consideration since plaintiff had paid the amount of the note to a corporation owned by the three of them prior to the execution of the note. Accordingly, they maintain a prior contribution is not consideration.

Quite to the contrary, we are convinced that since defendants agreed to execute the promissory note at the time the contribution was made by plaintiff, consideration exists. That the note was executed thereafter in fulfillment of the promise…