Ellen borrowed money from RBC. The promissory note she signed set out the intere

Question

Ellen borrowed money from RBC. The promissory note she signed set out the interest rates and terms of payment. Ellen was unable to make those payments a year later and re-negotiated the terms with RBC. She signed a new note with the new interest rate and terms of payment.   After six months she was unable to make those payment and RBC filed suit against her under the original promissory note. She raised the defense that the original agreement had been discharged by the execution of the second note and could not be sued upon. Is she right? Why or why not?

Explanation / Answer

no, she can not be sued upon original agreement because promissiory note are negotiable and she did negotiat once. so now she can not be sued upon 1st agrrement. if she is not paying 2nd then she can be sued.

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