Aud v. Magruder

Citations

• 10 Cal. 282

Syllabus

<p>The maker upon the face of a promissory note, with whatever motive or purpose he may sign it, is bound by the contract which he signs, according to the legal effect and meaning of the words. • He can not vary that meaning by parol.</p> <p>Where the words import an unconditional promise to pay the payee so much money at a certain time, the law affixes to this unequivocal language its obvious signification. The payor is not permitted to contradict the words by showing that when he promised to pay absolutely, he meant to bind himself to pay conditionally, or on some contingency, or if another did not, or if demand was made and notice given.</p> <p>One who signs a note to pay absolutely at a certain time, although he writes the word surety to his name, is not guarantying another’s contract, but he is making his own; and whether the consideration of the contract enure to him or to his friend, is wholly immaterial, so far as the construction and obligation of it are concerned.</p> <p>An endorsement or a guaranty of a note is wholly different. It is an agreement of itself—a new contract undertaken for another, that the latter will perform his contract.</p> <p>The difference between a maker and an endorser or guarantor, is, that the contract of the first, by its terms, imports an unconditional obligation to pay money—that of the last, by its terms, imports a conditional obligation. The rules of law settle this species of contract, as well as others, and prescribe how they may be created—their legal effect, and mode of enforcement.</p> <p>The word surety, written opposite the name of one of the makers, indicates no more than that, as between the payors, such maker is his surety. It is convenient for the purpose of evidence, in case the surety has to pay the money, but it does not in any way control the words of the note as between such payor and the payee.</p> <p>It is useless to inquire into the intent of the payor in such a case j the intent must be presumed to be accor