Jones, wishing to retire from a business enterprise that he had been conducting for a number of years, sold all of the assets of the business to Jackson Corp. Included in the assets were a number of promissory notes payable to the order of Jones that he had taken from his customers. Upon the maturity of one of the notes, the maker refused to pay because there was a failure of consideration. Jackson Corp. sued the maker of the note. Who should succeed? Expla

In a situation where the maker of a promissory note refuses to pay due to a failure of consideration, the legal responsibility typically falls on the original holder of the note, in this case, Jones. If Jones sold all the assets of the business, including the promissory notes, to Jackson Corp., the responsibility for any legal actions related to those notes would likely transfer to Jackson Corp.

In the context of the sale of assets, the terms of the sale agreement and any warranties or representations made by Jones to Jackson Corp. could also play a role in determining liability. If there were specific agreements or assurances regarding the validity of the promissory notes, Jackson Corp. might have grounds to pursue legal action against Jones for any losses incurred.

Ultimately, the outcome would depend on the specifics of the sale agreement, any representations made, and the applicable laws in the jurisdiction. Legal advice from a professional is recommended for a thorough understanding of the situation.