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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 p
incipals 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

his signature.

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.