Henry purchased an automobile from Iso Motors, and as a part of the payment, gave Iso Motors a promissory note in the amount of $4,000. If Henry should default on the note, Iso Motors may take legal action against Henry either on the contract of sale, or on the promissory note.

Question

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Iso Motors can take legal action based on the contract of sale for the automobile or on the promissory note because both represent obligations of Henry to pay the agreed amount. If Henry defaults, Iso Motors has the right to enforce either agreement in court.

Henry Purchased an Automobile from Iso Motors, and as a Part