Houston v. Keith

Citations

• 100 Miss. 83
• 56 So. 336

Syllabus

<p>1. Bills and Notes, Transfer. Bona fide purchasers. What laws govern. Burden of proof. Notice.</p> <p>In. a suit by the indorsee against the maker of a note made in Mississippi and payable in Texas. The rights of the indorsee to recover is governed by the laws of Texas.</p> <p>2. Same. •</p> <p>Under the Texas law the indorsee having become the owner of the note for a valuable consideration before maturity, in order for the maker to defeat his right to recover thereon it is necessary for the maker to show that the indorsee had notice of the failure of consideration.</p> <p>3. Bills and Notes. Actions. Burden of proof.</p> <p>Under the law merchant, which obtains in Texas, the holder of negotiable paper, indorsed to him, is presumed to have a tona fide title, and to have parted with value for it; and it devolves upon the maker of the note, who sets up the defense and equities between himself and the payee, to lay the foundation for the rights claimed, by showing that the indorsee parted with no valuable consideration, or that he took the paper when discredited and after it became due, or some other fact which would put him upon his guard and enjoin inquiry.</p> <p>4. Same.</p> <p>The purchaser of a note has the right to presume in the absence of knowledge to the contrary either that the payee had performed his part of the contract or that it would be performed.</p> <p>5. Evidence. Admission of agent.</p> <p>In a suit by the indorsee against the maker of a promissory note it .was error to allow statements made by the attorney of the indorsee as to the price paid by the indorsee for the note to go to the jury.</p>