Cohen v. Prater

Bleckley, Judge.

Is a note containing no negotiable words, transferred by indorsement before due, the indorsee paying value and having no actual notice of any defect in the consideration, subject, in his hands, to the defense of failure of consideration? This was the only question argued, counsel waiving all others presented by the record.

It is conceded that prior to the Code, negotiable words in the paper itself were necessary, even to enable the indorsee to sue in his own name: 1 Kelly, 77, 237. The Code, it is contended, altered this rule of law, not only so far as to make the indorsement…