Also known as: makers
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A person who makes an assertion of fact, opinion, intention, or law. The assertion supports liability for fraud when the maker knows it is false or lacks the stated basis for it and intends to induce reliance.
A person who makes an assertion of fact, opinion, intention, or law. The assertion supports liability for fraud when the maker knows it is false or lacks the stated basis for it and intends to induce reliance.
Select any source to read its text and confirm it supports the definition.
A person who signs a promissory note or other negotiable instrument as the party undertaking primary liability to pay the instrument according to its terms.
Select any source to read its text and confirm it supports the definition.
A person who signs a promissory note or other negotiable instrument as the party undertaking primary liability to pay the instrument according to its terms.
Each sense below has its own examples, sources, and questions.
Maya Malik sold her warehouse to Michelle Murphy after stating that the roof had been fully replaced two years earlier. Maya knew the roof still leaked and intended the statement to close the deal. When leaks appeared, Michelle sued for fraudulent misrepresentation and recovered because Maya was the maker whose knowing falsehood induced assent.
Mason McCarthy prepared financial statements for his client and told a potential investor that revenue had doubled. Mason lacked any reasonable basis for the figure yet presented it as verified. The investor relied on the statement and lost the investment when the true numbers emerged, exposing Mason as the maker subject to tort liability.
Marco Marquez told a buyer the land was suitable for immediate construction while knowing a prior soil report showed instability. The buyer relied on the statement and purchased the parcel. After discovering the report, the buyer recovered damages because Marco was the maker whose material misrepresentation induced the transaction.
Maria Morales told a supplier the company was debt-free to secure an initial shipment. Months later she induced the same supplier to extend credit for a larger order while knowing the supplier still relied on the earlier statement. The supplier suffered loss and recovered because Maria remained the maker liable for the repeated effect of the misrepresentation.
A maker is liable when the maker knows the assertion is false, lacks confidence in its truth, or knows the basis stated for the assertion does not exist. Liability arises only if the maker also intends the assertion to induce assent.
Supporting sources
A misrepresentation is material if a reasonable person would likely rely on it to assent or if the maker knows the particular recipient would likely rely on it. Materiality focuses on the probable effect on the recipient's decision.
Supporting sources
Madison Meyers signed a promissory note promising to pay Mercury Industries $50,000 for new machinery. The note was payable on demand. When Mercury presented the note the next day, Madison refused payment, dishonoring the instrument because she was the maker who failed to pay on presentment.
Monarch Pharmaceuticals issued a demand note to a lender. The lender presented the note on the due date, but Monarch refused to pay. Because presentment was duly made to the maker and payment was not forthcoming, the note was dishonored under the UCC.
A signature is that of the maker when the signer undertakes primary liability on a note. A signature becomes an indorsement only when made for negotiation, restriction, or indorser liability and is not that of the maker, drawer, or acceptor.
Supporting sources
A demand note is dishonored if presentment is duly made to the maker and the maker does not pay on the day of presentment. Dishonor triggers the holder's remedies against the maker.
Supporting sources
…and are not expected to, buy goods, whether they be foodstuffs or automobiles, exclusively for their own consumption or use. Makers and manufacturers know this and advertise and market their products on that assumption; witness, the “family” car, the baby foods, etc. The limitations of privity in contracts for the…