Carstensen & Anson Co. v. Wright

Citations

• 25 Idaho 492
• 138 P. 830
• 1914 Ida. LEXIS 12

Syllabus

<p>Contract — Clatm and Delivery — Construction op Contract — Note— Innocent Purchaser.</p> <p>1. Where a contract is entered into between a corporation with its place of business in Salt Lake, Utah, and E. C. Howard, doing business under the name of the Howard Music Company, and the court’s findings and the record show that he used the name “Howard Music Company” as a business name, when there was no such company, but that Howard was the party who sold the piano under this contract and took a note for it, and offered the note for sale; and afterward the party to whom the note was offered to be sold, being the respondent, refused to buy it and did not receive it, but demanded a new note, and the note was returned to Howard and the demands of Wright were complied with under a contract between Howard and Beasley with the purchaser, the respondent, and a new note in proper form that Wright would buy was executed, for which he paid the sum of $400, such contract was valid, and the consideration was a sufficient consideration for the execution of said note.</p> <p>2. The rule of law governing a transaction as to the dealing with the holder of the legal title by an innocent purchaser is, that where the owner of a negotiable instrument clothes another person with the apparent legal title to the instrument, such person so clothed with the apparent legal title may sell and dispose of the instrument to an innocent person for value without notice of the right of the real owner, in the same manner as though he were the real owner.</p> <p>3. Sec. 3654, Rev. Codes, provides: “A. non-negotiable written contract for the payment of money or personal property may be transferred by indorsement, in like manner with negotiable instruments. Such indorsement transfers all the rights of the assignor under the instrument to the assignee, subject to all equities and defenses existing in favor of the maker at the time of the indorsement.”</p> <p>4. The rule of law applicable in this state is,