Beth Just Remembered a Promissory Note; Where Her Cousin John

Beth just remembered a promissory note; where her cousin John owes him $2000. It was a business loan made six and a half years ago. The note was written up as a one- year 6% note, but informally the understanding was that John would pay it back "as soon as the business got on its feet". John has made no mention of it, but his business is currently doing quite well. Thinking of the limitations statute, can Beth sue on this promissory note?

A) Yes, since in this case, the statute of limitations is for a 20- year period.
B) Yes, since six- year time limitation did not start until there was a right of action.
C) Yes, since this is a negotiable instrument-not covered under the statute.
D) No, since John has not admitted to owing for more than six years.
E) No, since the statute of limitations is six- years.

Correct Answer:

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