Court of Civil Appeals of Texas, 1922

Barnett v. Perrine

Barnett v. Perrine
Court of Civil Appeals of Texas · Decided December 13, 1922 · Bonce
245 S.W. 1037; 1922 Tex. App. LEXIS 329 (South Western Reporter)

Barnett v. Perrine

Opinion of the Court

BONCE, J.

We think the trial court’s finding that Barnett authorized his partner, Kinsey, to bind the firm of Barnett & Kinsey by indorsement and delivery of the note in question to plaintiff Wise, is sustained by the evidence. Kinsey was, according to the evidence, authorized by Barnett “to trade” the note. That meant, in -the language of commercial law, its negotiation. The note was *1038 payable to tbe order of Barnett & Kinsey, and its negotiation implied “tbe indorsement of tbe bolder completed by delivery.” Section 30, Negotiable Instruments Act of 1919 (Laws 1919, c. 123), being Vernon’s Ann. Oiv. St. Supp. 1922, art. 6001 — 30. If it bad been transferred without indorsement tbe transferee for value bad tbe “right to have tbe indorsement of tbe transferor.” Section 49, Negotiable Instruments Act (article 6001 — 49). So tbe authority to negotiate implied authority to ' indorse. Whether tbe indorsement should be a general or qualified indorsement would depend on tbe intention of tbe parties to be gathered from tbe terms of tbe authorization, and if these were not specific they should be construed in tbe light of attending circumstances. Perhaps authority to indorse without express restriction would usually imply a general indorsement. Daniel on Negotiable Instruments, § 666. However tliat may be, tbe parties by their actions indicated that such was their construction of the extent of the authority. Kinsey indorsed the name of the firm without qualification. Barnett afterwards recognized, without question, the binding effect of the indorsement and promised to pay. If this was not a ratification, it at least may be taken into consideration in ascertaining the intention of the parties in the first instance.

Affirmed.

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