30 Mo. 455 | Mo. | 1860
delivered the opinion of the court.
There is no doubt that a bona fide endorsee of a negotiable note can not be affected by any dealings between the original parties of which he had no notice. Therefore, where a negotiable note is endorsed before it is due, a payment made to the endorser before his endorsement will not be an extin-guishment of the debt so far as the endorsee is concerned, unless he has notice of the payment at the time he gets the title to the note. (Story on Bills, § 417; Chitty on Bills, Ch. 6 ; Prior v. Jacocks, 1 John. Cas. 169.)
Of course this principle will apply a fortiori to payments made after the endorsement.
Grant’s liability, as security for Yates, the payee and endorser of the note, was a sufficient consideration to support his title as evidence. (Story on Bills, § 183.) But a consideration may be entirely sufficient to support the transfer at the time, and yet there may be a subsequent failure of it in whole or in part. If Yates had paid off the note on
The judgment is reversed and the cause remanded.