Henderson v. Shaffer

Citations

• 110 La. 481
• 34 So. 644
• 1903 La. LEXIS 659

Syllabus

<p>NOTE — PAYMENT—WHAT CONSTITUTES-CHECK —MISTAKE.</p> <p>1. A party holding the note of a corporation surrendered the same to its secretary and treasurer on receiving from him a check for a corresponding amount, payable to the creditor’s order, drawn by a stockholder in the corporation and one of its directors. The secretary and treasurer not mentioning that he was acting as the agent of the drawer of the check, and for the purpose oí buying the note, the creditor was justified in supposing the check was given in payment of the note, and not for its purchase. On the faith of such belief, he turned over later to the corporation officers funds of the corporation in his hands more than sufficient to pay the note. Under such circumstances the note was paid, not bought, and the drawer of the check could not recover back the amount as a payment made in error. Oiv. Code, art. 2310.</p> <p>2. If, by error or ignorance, one has done himself a prejudice which cannot be repaired without breaking in upon the right of another-, the error cannot be corrected to the prejudice of the latter.</p> <p>(Syllabus by the Court.)</p>