Cake v. Pottsville Bank

Citations

• 116 Pa. 264
• 9 A. 302
• 1887 Pa. LEXIS 388

Syllabus

<p>1. In an action by the payeaof a note against an indorser, it is competent for the latter to show by parol evidence, that when the note was made, indorsed and delivered, the payee’s agent procuring the note agreed with the defendant that he should not be held liable upon Ms indorsement, but the payee would look to collateral security agreed to be given.</p> <p>2. The president of a banking corporation taking a new note in settlement of matured paper held by Ms bank, acts as the bank’s agent in the transaction, and whatever he does within'the apparent scope of Ms authority to obtain the new security, is binding on the bank which accepts and ■ holds it.</p> <p>3. A party to a contract may not testify to thoughts and purposes on Ms part undisclosed at the time of making the contract, in order to affect its legal import.</p>