Manufacturing Company v. Bradley - 105 U.S. 175 (1881)
U.S. Supreme Court
Manufacturing Company v. Bradley, 105 U.S. 175 (1881)
Manufacturing Company v. Bradley
105 U.S. 175
1. A corporation organized under the laws of South Carolina agreed, by an instrument under its seal, to pay on a certain date to A. a sum of money at a specified rate of interest, and by an endorsement under its seal, infra p. 105 U. S. 177, on the paper after it matured, further agreed, in consideration of forbearance to a date named, to pay at a higher rate of interest the money to hearer. Held: 1. That the endorsement is a new contract upon sufficient consideration, and is negotiable within the meaning of the law merchant and by the law of that state. 2. That B., the lawful holder thereof, is not precluded from suing thereon in the circuit court by the fact that A. is a citizen of that state.
2. Where the paper, by its terms, creates a lien for the debt therein mentioned, the stockholders also being by law jointly and severally liable therefor, and their property subject to seizure upon an execution against the company, held that to a suit in equity seeking a decree for the debt and the enforcement of B.'s lien, the stockholders are proper parties defendant.
3. The fact that after the paper had matured, the president of the company bought it and transferred it by delivery to B. furnishes no defense to a recovery, the purchase having been made in good faith with his own means, and sanctioned by the directors of the company.
The facts are stated in the opinion of the Court.