Lanterna Rally

Author: Christopher Gustavus Tiedeman

Publisher: Rarebooksclub.com

Published: 2013-09

Total Pages: 262

ISBN-13: 9781230030265

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1898 edition. Excerpt: ...of the note in the hands of an indorsee though he had notice of such agreement. A great part of theiinproveinent of the country and of business generally is carried on with money raised by the discount of notes given upon executory contracts, and if the maker could be allowed to defend against such notes, in case of a breach of contract on the ground that the indorsee, though in other respects bona fide, had knowledge of the transaction out of which the note grew, all confidence in such notes as negotiable paper would be destroyed, and such business would be paralyzed. By making and delivering a negotiable note the maker is held to intend that it may be put in circulation. and that no defenses against it exist. In purchasing such note no inquiry as to the consideration is required. If a failure of consideration occur, the maker must look to the payee for indemnity. On this subject Parsons, in his work on Bills and Notes (volume 1, p. 261), says: "Knowledge on the part of the holder, at the time he took the note, that it was not to be paid on a specified contingency, is not suflicient to defeat his right to recover, although the contingency had then happened, if he was ignorant of this fact. See, also, Miller v. Ottaway, 81 Mich. 196; 45 N. W. 465; Adams v. Smith, 35 Me. 324; Kelso 12. Frye, 4 Bibb, 493; Dow 'v. Tuttle, 4 Mass. 414; Davis '0. McCready, 17 N. Y. 230; Tied. Com. Paper, 42, and cases cited. If the breach had occurred to the knowledge of the indorsee when he purchased he would not, of course, he protected. The settled rules of law governing commercial paper, upon the stability of which alone can the usual business of the country be transacted, cannot be disregarded in order to relieve a few unwary persons from the...