Cox & Sons Co. v. Northampton Brewing Co.

Citations

• 245 Pa. 418
• 91 A. 859
• 1914 Pa. LEXIS 890

Syllabus

<p>Negotiable' instruments — Accommodation endorsers — Corporations — Ultra vires acts — Bona fide holders — Presumption of validity —liability of corporations — Act May 16,1901, P. L. 19 h-</p> <p>1. A corporation having the general power to issue negotiable paper and to endorse the same for its own benefit in the course of its business, will be liable on its accommodation endorsement when the paper passes into the hands of a bona fide holder for value before maturity, without notice of the character of the endorsement.</p> <p>2. Section 56 of the Negotiable Instruments Act of May 16, 1901, P. L. 194, providing that “to constitute notice of an infirmity in the instrument or defect in the title of the person negotiating the same, the person to whom it is negotiated must have had actual knowledge of the infirmity or defect, or knowledge of such facts that his action in taking the instrument amounted to bad faith”; applies to all classes of persons, artificial as well as natural.</p> <p>3. A corporation having either an express or implied power to issue negotiable paper is presumed to act within the scope of such power, and hence there is a presumption in favor of the validity of negotiable paper issued pursuant to such power.</p>