Hanover Nat. Bank of New York v. First Nat. Bank of Burlingame

Citations

• 109 F. 421
• 48 C.C.A. 482
• 1901 U.S. App. LEXIS 4212

Syllabus

<p>1. National Banks — President’s Power to Procure Discounts.</p> <p>The president of a national bank, wlio has the actual management of its operations, is authorized to procure the discount of its paper.</p> <p>2. National Banks — Power to Contract Orally,</p> <p>A national bank may make a binding oral agreement to repay money it borrows, and to pay notes it procures to be discounted.</p> <p>3. Illegal Contract Not Enforceable.</p> <p>An action cannot be maintained on a contract that is illegal or against public policy, where both parties are equally culpable.</p> <p>4. Contract Enforceable Though Aiding Violator of Law.</p> <p>A contract in whose consideration and performance nothing illegal or against public policy inheres may be enforced although it may incidentally aid one in evading or violating a law.</p> <p>5. Avoidance of Contract Not Penalty for Violation of a Statute unless Prescribed Therein.</p> <p>Where a statute commands certain parties to do, or prohibits them from doing, certain acts, and prescribes the penalties for their violation of its commands, courts may not inflict other penalties for its violation upon other parties not named in the law by the avoidance of their contracts.</p> <p>6. - Action on Contract Executed by Plaintiff — Intention of Defendant to Violate Law No Defense.</p> <p>One who has received the benefits of the performance by the plaintiff of a contract which was neither malum in se nor malum prohibitum cannot successfully defend an action for the payment of his indebtedness arising therefrom on the ground that he intended to do some illegal act, which was neither a part of the consideration or of the performance of the agreement.</p> <p>Caldwell, Circuit Judge, dissenting.</p> <p>(Syllabus by the Court.)</p>