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Business Law In Brief
It is a fraud to conceal a fraud.
Ignorance of the law excuses no one.
A contract made on a Sunday is void.
A contract made with a lunatic is void.
The act of one partner binds all the others.
An agreement without consideration is void.
The law compels no one to do impossibilities.
Agents are liable to their principals for errors.
Principals are liable for the acts of their agents.
A receipt for money paid is not legally conclusive.
Signatures made with a lead pencil are good in law.
The seal of a party to a written contract imports consideration.
A contract made with a minor cannot be enforced against him. A note made
by a minor is voidable.
Each individual in a partnership is liable for the whole amount of the
debts of the firm.
A note which does not state on its face that it bears interest, will
bear interest only after due.
A lease of land for a longer term than one year is void unless in
An indorser of a note is exempt from liability if notice of its dishonor
is not mailed or served within twenty-four hours of its non-payment.
In case of the death of the principal maker of a note, the holder is not
required to notify a surety that the note is not paid, before the
settlement of the maker's estate. Notes obtained by fraud, or made by an
intoxicated person, are not collectible.
If no time of payment is specified in a note it is payable on demand.
An indorser can avoid liability by writing without recourse beneath
A check indorsed by the payee is evidence of payment in the drawer's
An outlawed debt is revived should the debtor make a partial payment.
If negotiable paper, pledged to a bank as security for the payment of a
loan or debt, falls due, and the bank fails to demand payment and have
it protested when dishonored, the bank is liable to the owner for the
full amount of the paper.
Want of consideration--a common defense interposed to the payment of
negotiable paper--is a good defense between the original parties to the
paper; but after it has been transferred before maturity to an innocent
holder for value it is not a defense.
Sometimes the holder of paper has the right to demand payment before
maturity; for instance, when a draft has been protested for
non-acceptance and the proper notices served, the holder may at once
proceed against the drawer and indorsers.
Negotiable paper, payable to bearer or indorser in blank, which has been
stolen or lost, cannot be collected by the thief or finder, but a holder
who receives it in good faith before maturity, for value, can hold it
against the owner's claims at the time it was lost.
If a note or draft is to be paid in the State where it is made, the
contract will be governed by the laws of that State. When negotiable
paper is payable in a State other than that in which it is made, the
laws of that State will govern it. Marriage contracts, if valid where
they are made, are valid everywhere. Contracts relating to personal
property are governed by the laws of the place where made, except those
relating to real estate, which are governed by the laws of the place
where the land is situated.
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