Hannay v. Guaranty Trust Co.

Citations

• 187 F. 686
• 1911 U.S. App. LEXIS 5168

Syllabus

<p>1. -Bills and Notes (§ 132*) — Recitals Affecting Character of Instrument —Conditional Draft.</p> <p>A draft containing the provision, “Charge the same to the account of R. S. M. I. 100 bales of cotton,” with what purports to be a bill of lading for the cotton attached, is drawn against the cotton, and is conditional.</p> <p>[Ed. Note. — For other cases, see Bills and Notes, Cent. Dig. §§ 316-32-1; Dec. Dig. § 132.*]</p> <p>2. Bills and Notes (§ 82*) — Conditional Draft — “General Acceptance.”</p> <p>A “general acceptance” of a draft is an agreement to pay according to-the tenor of the bill, and if the draft is conditional the acceptance binds the acceptor to pay according to the conditions, and not otherwise.</p> <p>[Ed. Note. — For other cases, see Bills and Notes, Dec. Dig. § 82.*</p> <p>For other definitions, see Words and Phrases, vol. 4, p. 3048.]</p> <p>3. Carriers (§ 58*) — Draft Based on Forged Bill of Lading — Recovery of-Payment by Acceptor.</p> <p>Dealers in Alabama contracted to sell 100 bales of cotton to plaintiffs, in Liverpool, and made a draft on plaintiffs’ bank and authorized agent in Liverpool, payable to their order, “value received, and charge, the same to R. S. M. I. 100 bales of cottonwhat purported to he a hill of lading-for such cotton being attached. The draft and accompanying papers were indorsed to defendant hank, and were by it presented to and accepted generally, and paid by plaintiffs’ bank, acting in the belief, as did defendant, that the bill of lading was genuine. It was in fact a forgery,., and no cotton was shipped. Neither plaintiffs nor their hank relied on the credit of the drawers, hut on the bill of lading. If eld, that the acceptance and payment of the draft was conditional oil the genuineness of the bill of lading, and that plaintiffs were entitled to recover the amount from defendant as having been paid by mistake.</p> <p>[Ed. Note. — For other cases, see Carriers, Cent. Dig. §§ 179-190; Dee Dig. § 58.*]</p>