ÆäÀÌÁö À̹ÌÁö
PDF
ePub

MCMASTER'S

COMMERCIAL DECISIONS

AFFECTING THE

BANKER AND MERCHANT

FROM THE

Decisions of the highest coURTS OF THE SEVERAL

STATES.

By J. S. MCMASTER.

Examiner New York State Bank Department

VOL. VII.

THE COMMERCIAL BOOK COMPANY

69 Wall Street, NEW YORK.

ALBANY:

WEED-PARSONS PRINTING CO

1904.

AUG 27 1931

MCMASTER'S COMMERCIAL CASES

AFFECTING THE

BANKER AND MERCHANT

FROM THE REPORTS OF THE HIGHEST COURTS OF THE SEVERAL STATES.

[blocks in formation]

Held, in certain case, that where a bank balanced the pass book and returned the vouchers of a corporation depositor, and in the entries in the book and in such vouchers there was plain evidence, which would have appeared on an examination of the book, of the fact that an employee was defrauding the bank or corporation, that the loss would fall on the corporation. 463a.

ACKNOWLEDGMENT:

Chattel mortgage held void as to record for the reason that it was acknowledged before a partner of the firm for whom the mortgagee was trustee : Imperfect description of chattels. 58a.

iii

AGENCY:

Where an agent to sell certain property consummated on the sale Sunday, held that the principal could not repudiate the contract. No. 728, p. 122. Agent who had actual authority to indorse checks for deposit, held to have bound his principal by indorsing a check which was diverted through third party. A special agent with authority to sell a particular article, held to have power to fix price, and buyer is not bound by secret instructions of principal to agent. No. 718, p. 73.

191a.

Death terminates instantly all power to

act under a power of attorney not coupled with an interest. 1ба. Certain acts of an individual in using letterheads describing himself as agent of a company, held not to make the company liable for certain contracts made by the alleged agent. No.

745, p. 215.

Acts of a director of a bank in procuring paper to be discounted, held to be the acts of an outsider, not those of a director. No. 747, p. 225. Where a president of a corporation, without proper authority from the corporation, employed a broker to sell some of its real estate, held that the president would be liable to the broker for special damages. No. 771, p. 314. Right of employer or principal to discharge broker or employee before end of term of agency or employment. 404a.

AGENCY-Continued:

Where a commission merchant deposited
in his own name proceeds of sale of
principal's property, held that the
bank could apply the credit to debts
due the bank from the commission
merchant. 398a.

A broker, knowing in receiving an order
for sale of stocks that the broker giv-
ing the order is acting for an undis-
closed principal, may elect whether
he will proceed against the broker or
the principal, but having proceeded
against one he loses all rights against
the other. 362a.

Banker who was instructed to loan de-
positor's funds, held responsible for
loan carelessly or fraudulently made
to one who was largely indebted to
the banker. 359a.

Where a bank cashier drew checks of
his bank, signed by himself as cash-
ier, and sent them to a brokerage firm
through whom he was speculating,
held that the brokers were liable to
the bank for funds lost to the bank,
the cashier not having accounted to
the bank for the amount of such
checks. 336a.

Where an agent, with authority only to

rent land, made a contract of sale
with one who went into possession in
good faith and made valuable im-
provements to the buildings, held,
that the owner was not liable for the
value of the improvements, he having
repudiated the contract as soon as
brought to his knowledge. No. 743,

p. 207.

Where premium on fire insurance policy
was paid by giving the agent mer-
chandise, held that such payment
would not bind the company. 59a.
Rule as to implied power of president
and secretary of a corporation to exe-
cute its promissory note. 66a.
Authority of agent, who has power to
indorse for deposits, to indorse and
draw money. 64a.

Agent to sell ice had an offer of $1.50

a ton which he did not report to his
principal. Subsequently he said that
he could get 75 cents a ton, which offer
was accepted. Held, that Owners
could repudiate sale on learning that
the agent was purchaser. 55a.
Real estate brokers' right to commis-
sions where the principal had reserved
the right to make sale himself, and
had made sale, and the brokers had
found a purchaser before being noti-
fied of the sale. 50a.

Where a depositor in bank drew his
check for $5,000 on the bank and re-
quested the cashier to deposit the
amount for him in another bank, and

AGENCY-- Continued:

the cashier used the check to cover his
defalcation, held, reversing the lower
court, that the cashier's bank was lia-
ble. 294a.

Where a trust company held as collat-
eral for a $5,000 debt, mortgages of
the face value of $24,000, on property
worth $20,000, and the owner of
the collateral ordered the trust com-
pany to foreclose the mortgage and
bid the property in for what it was
worth, and the company bid the face
of the mortgage - $4,000 more than
the property was worth-Held, that
the trust company became a purchaser
on their own account and must ac-
count for the $24,000 as money re-
ceived at the sale. 307a.

Where a president of a corporation with-
out proper authority executed a con-
tract in the name of the corporation
and the corporation repudiated the
contract: Held, that if the other party
to the contract was in position to fully
perform, the president would be liable
on his implied warranty of his au-
thority to bind the corporation. 325a.
Where the cashier and manager of a

bank was indebted, individually, to a
third party, and the cashier, when de-
mand was made for the payment of
his debt, stated to the creditor that he
had placed the amount to her credit
on the books of the bank-but no
credit was made- - but the amount
was placed on the creditor's pass book,
and checked out: Held, on the failure
of the bank, and discovery of the
transaction, that the creditor was lia-
ble to the bank for the amount so
withdrawn. 210a.

Where an agent deposited money of his
principal in a bank, and at the agent's
request the bank so telegraphed the
principal: Held, that the bank was
liable to the principal although it
handed the amount back to the agent
on his failure to have a proper signa-
ture card furnished the bank. 253a.
Where the president of a corporation
who had power to indorse and dis-
count its bills receivable and did so
frequently with banks - indorsed and
discounted such bills to himself on
fair terms and in good faith: Held, on
appeal, that the corporation was not
liable on its indorsement. 201a, No.

735, p. 155.

ALTERATION:

-

An alteration of a contract by an agent
authorized to make the contract, held
to be the spoliation of a stranger and
not to affect the validity of the con-
tract. 119a, No. 717, p. 71.

ALTERATION - Continued:

Waiver of protest placed over indorsed

name held to have released him. 147a.
Where, after the surety had guaranteed
the payments to be made on a ten-
year lease, its terms were, without his
knowledge, altered so that if the build-
ings were destroyed by fire the lease
was to terminate, - held that the sur-
ety was released. 244a.

ARBITRATION:

Urofessional appraisers, usualy employed
by insurance companies in arbitrating
fire insurance losses, held to be dis-
qualified. 60a.

ASSIGNMENT:

Certain assignment void for want of de-
livery. 80a.

Where one in assigning a usurious bond

and mortgage covenanted "that there
is due on said bond and mortgage the
sum of $183.72," held, that the as-
signor was liable for that amount to
the purchaser, although under the New
York statute the instruments were
void for usury. No. 712, p. 56.
Assignments first made of portion of
special fund, held to have preference
over subsequent assignment although
notice of the latter was first conveyed
to the debtor. 22a, No. 714, p. 62.

[blocks in formation]

BILL OF LADING:

Bank held not to warrant the contract
of the seller by taking his draft, on
the buyer, with bill of lading at-
tached, and collecting the draft. 128a.
In a certain written guaranty of drafts
"with bill of lading attached"

which were yet to be issued: Held,
that it was for the jury to say whether
one who advanced the money on the
drafts was bound at his peril to see
that the bills of lading were so drawn
as to allow him to control the goods.
218a, No. 738, p. 183.

Rule as to release, down to a certain
valuation, where stamped on a bill of
lading by a common carrier - the at-

BILL OF LADING Continued:

tention of the shipper not being called
thereto. 292a.

Purchaser, by his conduct in relation to
a certain shipment of damaged goods,
held to be liable on his check given
therefor to a collecting bank. 40a.
Purchaser of bill of exchange with bill
of lading attached, held not to warrant
to the drawee the quantity or quality
of goods mentioned in the bill of lad-
ing. I 2a.

Where a bill of lading attached to a
draft drawn by S. on J. was made to

[ocr errors]

Consignee S., notify J.," held, that
on payment of draft and its presenta-
tion, with bill of lading, to the car-
rier, that J. would be entitled to the
shipment although the bill of lading
was not indorsed.

Where a bill of lading, drawn to the
order of the shipper or his assigns,
was indorsed by the shipper and at-
tached to a draft discounted by a
bank, held, that the carrier was liable
to the bank for delivering the goods
to the consignee named in the bill of
lading without its surrender, notwith-
standing a custom so to deliver goods.
No. 770, p. 308.

BOARD OF TRADE:

Rule in Illinois as to the legality of op-
tion contracts. 142a.

BONA FIDE HOLDER:

Under the laws of New Jersey a wife is
not liable on a note as surety for her
husband: Held, that where a married
woman in that State indorsed a note
in blank to be used by her husband
for a certain purpose, and the hus-
band had the note filled out and dis-
counted for another purpose in the
State of New York, the wife is liable.
35a.

A note negotiable in form, held to be
made a non-negotiable instrument by
reason of certain clauses in mortgage
given to secure it. No. 710, p. 49.
Purchaser of bill of exchange with bill
of lading attached, held not to warrant
to the drawee the quantity or quality
of goods mentioned in the bill of lad-
ing. 12a.

In many States a pre-existing debt is a
sufficient consideration to constitute
one a holder in due course of a negoti-
able note. The negotiable instruments
law seems so to declare; but the lower
courts of New York hold that such
declaration does not change the rule
previously existing in New York, i. e.,
that such consideration does not con-
stitute one a holder in due course.

2732.

« ÀÌÀü°è¼Ó »