Gianna Miceli and Speaker B break down how promissory notes often violate contract law. They explain why "without recourse" clauses strip away warranties, how naming an unnamed payee creates legal problems, and why sellers routinely leave blank lines in notes before selling them to parties with no legal right to assume those obligations.
Can you tell me about the stampings on the note?
So again, if it says page the order of again, it's already order paper the minute. Again, it says without recourse. Without recourse means without warranty, without representation. So they are naming an as of yet unnamed payee to the note. However, there is no one named in public record that can take on this as of yet unnamed party because there is a lack of agent principal relationship. Basic contract law. You have attorneys that tell you you never leave a blank spot on a contract, but yet they leave these blank lines and they're selling them. They tell you, oh, we've sold your note to who can't even. It would never work in the.
Real world. I can't tell you.
Right. But that is what they're doing.
It.
