Parker v. . Thomas

The dominant question of law presented is, whether or not the transaction constituted fraud in the factum or fraud in the treaty.

If the transaction constituted fraud in the factum, the note and the deed of trust held by the defendant bank is a nullity and void. If, upon the other hand, the evidence discloses only fraud in the treaty, the note and deed of trust would be voidable as between the original parties thereto, but binding in'the hands of a third person who was the innocent holder thereof. The rule is stated thus in Medlin v. Buford, 115 N. C., 260: “The first question to be considered…