Mitchell v. Finnell

Citations

• 101 Cal. 614
• 36 P. 123
• 1894 Cal. LEXIS 1088

Syllabus

<p>Promissory Note—Agency tor Payee—Finding Against Evidence.— Evidence establishing without conflict that the payee of a note authorized a third person to settle with the maker for sheep claimed to have been stolen from the payee of the note, and to take any thing he could get, proves authority to take a promissory note, and a finding that the note was taken without the authority or direction of the payee is not . justified by the evidence.</p> <p>Id.—False Representations and Threats of Agent.—The payee of the note must be held responsible for false representations and threats of criminal prosecution made by the agent taking the note, within the scope of the authority given to him to settle with the maker and get what he could out of him.</p> <p>Id.—Principal, When Bound by Acts of Agent.—A principal is bound by acts and representations of an agent within the scope of his authority, even though the agent disobeyed his positive directions.</p> <p>Id.—Ratification—Indorsement of Note.—The payee must be held to have ratified whatever was done by the agent in procuring the note, by the fact that he indorsed it with the knowledge that it was given in settlement of a supposed claim of the payee against the maker.</p> <p>Id.—Knowledge of Wrongful Acts.—So far as concerns the validity of the note indorsed by the payee, he is chargeable with knowledge of the wrongful acts of his agent, whether he had such knowledge or not.</p> <p>Id.—Payment of Money to Agent.—The indorsement and transfer of the note being the act of the payee, it was immaterial whether the money was paid to the payee or to his agent.</p> <p>Id.—Enforcement of Fraudulent Note by Bona Fide Purchaser—Recovery From Payee.—Where the maker of a note which was procured by menace and false representations of the agent of the payee is compelled to pay it to a bona fide purchaser for value, before maturity, without notice of the fraud, the payee who indorsed the note to such purchaser is responsible to the maker fo