BILLS AND NOTES-TRADE ACCEPTANCE-REFERENCE TO THE PURCHASE AGREEMENT

Authors

Abstract

The defendant drew a trade acceptance in favor of the Turner Manufacturing Co. containing the following provision: "The obligation of the acceptor hereof arises out of the purchase of goods from the drawer, maturity being in conformity with the original terms of the purchase." The drawer indorsed the instrument to the plaintiff bank, a purchaser in due course. Held, that the trade acceptance was rendered non-negotiable by the clause "maturity being in conformity with the original terms of the purchase." First Nat. Bank, Statesville, N. C. v. Power-Equipment Co. (Iowa, 1930) 233 N.W. 103.

Recommended Citation

BILLS AND NOTES-TRADE ACCEPTANCE-REFERENCE TO THE PURCHASE AGREEMENT, 29 Mich. L. Rev. 626 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss5/15