Note With Endorsement Of Third Party Placed Thereon Before Endorsement Of Payee - Liability Of Former To Holder In Due Course
This section is from the book "Canadian Banking Practice", by John T. P. Knight.
This section is from the "" book, by .
Note With Endorsement Of Third Party Placed Thereon Before Endorsement Of Payee - Liability Of Former To Holder In Due Course
Question 166. - A promissory note has been endorsed by John Smith before John Brown, the payee, has endorsed it. Subsequently the payee endorses it. Can John Smith be made liable as an endorser or otherwise by a bona fide holder for value?
Answer. - Smith would be liable to a holder in due course. This point is substantially the same as that dealt with by the Ontario Court of Appeal in Duthie v. Essery, 22 Ont. A. R. 192 (1895), and in Robinson v. Mann, 31 S. C. Can. 484 (1901).
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