McD. Ray v. Livingston

All tbe signatures on tbe note were forged except those of tbe defendant and T. A. Steele, tbe payee. It is fundamental tbat a forged signature creates no obligation. Steele is not a party to tbe action. Tbe only question is whether tbe defendant is liable to tbe plaintiff.

In asserting tbe liability of tbe defendant tbe plaintiff relies chiefly on tbe provisions of section 3041 of tbe Consolidated Statutes and on tbe legal principle enunciated in Bank v. Grafton, 181 N. C., 404. In tbat case tbe Court held tbat a “contract of endorsement is a substantive contract, separable and independent of…