Swall v. Clarke

Citations

• 51 Cal. 227

Syllabus

<p>Purchaser op Promissory Note.—A bona fide holder of a note who purchased it for value before it fell due, and without notice of payments made on it, can collect the face of the note and interest.</p> <p>Covenant that Certain Sum is Due on Note.—The assignee of a promissory note who purchases it in good faith before it falls due, without knowledge that payments have been made on it, and receives a covenant from the payee that the sum he pays for it is due, cannot maintain an action on the covenant if such amount is not due, for he sustains no loss, as the payor is liable to him for the face of the note.</p> <p>Action on Covenant.—In order to enable one to maintain an action on a covenant, there must not only be a breach of the covenant, but some loss or damage to the covenantee.</p>