Phelps v. Northup

Citations

• 56 Ill. 156

Syllabus

<p>1. Acceptance — by parol. A parol acceptance of an order to pay money out of the proceeds of a claim in the hands of the party upon whom the order is drawn for collection, is binding.</p> <p>2. Acceptance — of order to pa/y over proceeds of a claim when collected. A party in whose hands a promissory note was placed for collection, accepted an order from the owner of the note to pay over a portion of the proceeds thereof, when collected, to a third person. Afterward, the acceptor, by direction of the party placing the note in his hands, but with out the knowledge or assent of the holder of the order, surrendered the note to another, to whom it was paid: Held, in an action of assumpsit by the holder of the order against the acceptor, the surrender of the note, under the circumstances, was a fraud upon the plaintiff, and as much a breach of their contract as if the acceptor had himself collected the note and refused to pay over the portion of the proceeds represented by the order, and he was, therefore, liable in that action.</p>