Farmers Life Insurance v. Houghton

In this case the payee of a negotiable promissory note seeks to hold the makers of that note. It is met with the defense on the part of respondent that his signature to the note was obtained by fraudulent representations. Two questions are thus presented: First, may a payee be a holder in due course? Second, assuming that a payee may be such a holder, and assuming that Fristad was guilty of making false representations, (a) are Fristad’s misrepresentations, by reason of some application of the doctrine of respondeat superior, to be regarded as those of the payee; and (b) assuming that they…