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1 N.Y. 575

Erwin v. Downs

New York Court of Appeals

Decided July 1, 1857

New York Court of Appeals · decided 1857-07-01

<p>The endorsement of a promissory note, imports a guaranty by the endorser, that the makers were competent to contract in the character in which by the terms of the paper, they purported to contract.</p> <p>Presentment to one of two persons who, by the signature to a promissory note, purport to constitute a partnership firm, is sufficient to charge the endorser, though such person and her presumptive partner are married women.</p> <p>Knowledge by one who became the holder of such note before maturity, and for a valuable consideration, that the makers were married women, does not deprive him of the right to rely upon the implied guaranty of the endorser, that the makers were competent to contract, as partners, nor of the character of a bona fide holder.</p>

Decided 1857-07-01

Shankland, J.

¶1The note was void, as against the makers, because they were married women, and incapable of contracting obligations in that form. But when the defendant endorsed the note, he impliedly contracted that the makers were competent to contract, and had legally contracted, the obligation of joint makers of the note. He also assumed the legal obligation, in most respects, of the drawers of the bill. The fact, known to the plaintiff at the time he took the note, that the makers were married women, did not deprive him of the character of a bona fide purchaser. Nor does the payee’s knowledge that the drawee is a married woman, discharge the drawer in case of non-payment of the bill by the drawee. Nor is the endorser discharged, though the name of the maker is forged. (1 Comst., 113.) The fact is not found that the plaintiff was aware the note was accommodation paper. The plaintiff was a bona fide purchaser within the law merchant. Neither the complaint, nor the finding of the *577referee, tell us who transferred the notes to the plaintiff. The legal presumption is, that he received them from some legal holder in due course of business.

¶2The judgment should be affirmed.

¶3Brown, J., delivered an opinion to the same effect.

¶4All the other judges concurring,

¶5Judgment affirmed.

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