Smith v. Harper
California Supreme Court
Appeal from the District Court of the Twelfth Judicial District, San Francisco County. The facts material to the points decided, appear in the opinion of the Court.
1Opinion of the CourtMurray, C. J.
Heydenfeldt, J., concurred.
Where the holder of a note accepts a draft or check in payment, it has usually been held, that he is not bound to give up the note before payment of the draft or check, and if he does so, the indorsers are discharged thereby. The reason of this rule is said to be, that the indorsers are entitled to have the note immediately paid in cash; and if the holder receives notes of a banker, or bills of exchange, he gives credit for the time to the maker, fro tanto, and this he is not at liberty to do at the risk of the indorsers.
It has also been held, that the substitution…
2Cited by3 opinions
- Chamberlain Banking House v. WoolseyNebraska Supreme Court · 1900
- Young v. HibbsNebraska Supreme Court · 1877
- Bank of Hamilton v. MudgettNew York Supreme Court · 1884