The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1870-06-10
From Hearth and Home.
ABOUT PROMISSORY-NOTES.


during the few years past, by Whlc
| their signatures have been Obtainedtt
| those documents known in mercantiI
law as negotiable promissary-nOtes, b,
speciOus representations cOnnectel
with the sale of bogus patent-rights
has led US to believe that a few word
regarding these instruments could b
said with profit.
A negotiable prOmissOry-nOte Is de
fined as a written promise by one per
sOE for the payment of money to anO
ther person therein named, or to his or
| der, or to the bearer, at another speei
| fed time, absolutely and at all events
The nature of the contract requires tina
| it should be in writing. The persOI
signing the note on its face is the ma
ker, the one to whom it is given is thC
holder or payee, and if the note is made
payable to his order, and he transfer i
to third party, by writing his name
OH the back of it, he becomes the en-
dOrser; and the party to whom it /:
transferred, the endOrser or holder
An instrument made according to the
above definition is transferable, if pay
able to order, by endorsement-ifp pay
able to bearer, by delivery. The frs
requisite to a negotiable prOnTesOry.
note, it will be seen, is the maker. He
is the party primarily lis'sie'& bon it,
Any person capable OF entering into
contracts generally may make a neg0-
table promissOry-nOte The contracts
of persons under tWenty-one years OF
age, who are denOminated in law, in
fants, insane persons, idiots, and per-
sons under duress, are vOidable. Con
tracts made by married women, eX-
cept in certain cases hereinafter men
,F lou
apply to the parties to negotiable pro-
missory-note is a payee. If no payee
is named, or if no person is designated,
so that there is no person specified as
payee, the note will be void.
A promise to pay q sum on demand
for value received, without saying to
whom, is mere waste paper. But il
some person is specified, as by the bear
er, it will be sufficient. In case the
note is made payable to the order OF
the maker himself, or to the order of a
fictitious person, it is considered in law
as payable to bearer. The third requi-
site to a negotiable prOmissOry-nOte is
that it must be paid in money alone
If made payable in any kind of proper
ty, it will not be a negotiable instru-
ment, although it may be valid con-
tract, which may be enforced by an ac-
ton.
A note may be made payable in mo-
ney alone, and yet contain clause
which will render it non-negotiable.-
Eor. instance, where the maker prOmi-
70 pay q certain sum of money at q
time certain, and also to perform some
other act, the note is not negotiable.
The last requisite to negotiable pro-
is that it must be made
payable absolutely at time certain
If the payment of the money be con-
tingent upon some event which may
never happen, so where q maker pro-
misses to pay a specified sum when he
shall have realized it from the proceeds
of some fund or the sale of some article,
the note is not negotiabl But where
the payment is ms Md upon
an event which is > occur,
though it is uncertalnst Ve&t particu-
lar time it will happen, the note is va
lid and negotiable. AnOte made paya-
BILE a certain number of days after the
death of the makers father is negOtia
Alee since thetevept is certain to occur.
note may cd Aain an alternative
luse as to- the Geae payable, and be
The following form is
10 catch the unwary /:
leld, n. Y, Februa-
For value received, L
e toy John CutterbaT, or bear
e hundred dollars six months af-
tic, aG1less said sum shall be sooner
from the sale Of Smiths Pat
ent CrOaO6dT. S. S. s."
Such an instrument is an absolute
promise to pay sum of money at a
time certain, and the italacised clause
has no effect upon the legality of the
instrument, and yet many a farmer in
the Western counties of this State has
been humbugged by just such written
promises. The words "Value received
are usually contained in negotiable pro-
These words are not
absolutelE-essentia to their vitality.
The efT6~ Rmitting them is, to throw
the burden oE~1sEOying a valuable con-
on theaSrSlder, in case of q
trial hence it is besS s,lsat every note
should contain them.
Bogus patent-right merf~ axe a
negotiable prOmissOry-nOte fTo1 par
ty on the sale of {" territory" AN give
him back an agreement to the effect
that if he does not sell enough of the
patented article before the note becomes
due, they will buy back at the same
price he gave. This might be well
enough if the original payee held the
note at its maturity. But somehow he
never does, and the maker has 20 pay
it when due, or be leached with costs.
A knowledge of the above rule explains
it all. Their first object is to get the
note, and their next object to sell it be
fore it becomes due.
Another expedient this class of men
use is to procure the signature of a par
ty to a. blanfs7 1tSsby representing to
him tIhz S1lis address. The
defence of forgery has been successfully y
set up in some instances against notes
given in this manner. 1t is best, how
ever, to be chary of your autograph
where you see anything printed above
it, unless you clearly understand Its
meaning, and are willing to be bound
by it. An endOrser may, by signing
his name on the back of negotiable
promissory-no with the words with
out recourse" protect himself from any
liability on the instrument. Unless he
uses these words, or words of the same
import, he contracts with the holder
that, i'm case the maker fails to pay the
note when it becomes due, and he, the
endorser, is promptly notified of thai
fact, he, the endOrSer, will pay it
Omission to give notice of nOn-pay'
ment to the endOrser releases him so
where a party holds an endOTed note
and intends to make the endOrser liza
bic, he must give him prompt notice o
the makers default of payment. No
tice of non-payment to an endorse
may be verbal, but for certainty'of evi
dence, written notice Is preferable.
In regard to married wOmen's notes
we drop a few words. BY the common
law, they were void. In most of tin
States OF the Union, however, statutes
have been passed giving married wO
men the same rights in regard to thei
separate estates that they would hav
if single. A married woman's negOti
able prOmissory note under these stat
utes, when given for the benefit of he
separate estate, is valid, but it must b
/ for this purpose; and for no other. /
IL IL