May andersen use failure of consideration as a defense

Assignment Help Management Theories

Reference no: EM131379025

Andersen entered into a franchise agreement with Great Lake Nursery, under which Ander sen was to grow and sell nursery stock and Christmas trees.

Great Lake was to provide trees, chemi cals, and other items. Andersen signed an installment note that read in part, "For value received, Robert Andersen promises to pay to Great Lake Nursery Corp. $6,412." Great Lake indorsed the note and transferred it to First Investment Company. Later, Andersen stopped making payments because Great Lake filed bankruptcy and failed to perform its part of the franchise agreement.

May Andersen use failure of consideration as a defense when sued by First Inves t ment Company on the note? Why or why not?

First Inv. Co. v. Andersen, 621 P.2d 683 (UT).

Reference no: EM131379025

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