Despres, Bridge & Noel v. Hough Drug Co.

Citations

• 123 Miss. 598
• 86 So. 359

Syllabus

<p>1. Bills and Notes. Breach of malcer’s contemporary agreement no defense against bona fide holder.</p> <p>A promissory note, executed after the adoption of the Negotiable Instrument Law of 1916 when sold before maturity to a purchaser for value without notice of defenses, cannot be defeated on the ground that the original payee had not complied with the terms of a contemporary agreement, which constituted the consideration of such note.</p> <p>2. Bills and Notes. Failure of consideration no defense against bona fide purchaser.</p> <p>Where a note, executed under the Negotiable Instrument Law, is assigned to a third person, a valid consideration is presumed, and in the hands of a holder for value before maturity is not subject to a defense on the ground of failure of consideration.</p> <p>3. Bills and Notes. Investigation of original payee by postal department insufficient to destroy bona fides of buyer.</p> <p>Wiiere a maker of a negotiable promissory note is sued by an assignee who acquired the note before maturity in good faith, the mere fact that the Post Office Department conducted an investigation of the payee with a view of issuing a fraud order against such payee, and that the assignee knew of such investigation when it acquired the note, is not sufficient to destroy the b.ona fides of the buyer of such note, where there is nothing to show fraud as to the particular note in such investigation, and the knowledge thereof.</p> <p>4. Bills and Notes. Failure of corporation payee to file charter as condition to doing business no defense against b'ona fide holder.</p> <p>Where the maker of a promissory note executes and delivers a note to a corporation, and such corporation has assigned the note to a purchaser for value before maturity, a defense by the maker that the payee corporation had not filed its charter in the State where the note is made and where it is payable is not maintainable under the Negotiable Instrument Law.</p>