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Keywords

contractstatuteverdictobjection

defendanttrialverdictmotion

Related Cases

Scudder v. Union Nat. Bank of Chicago, 91 U.S. 406, 1 Otto 406, 51 How. Pr. 339, 23 L.Ed. 245

Facts

The case arose when Leland & Harbach, commission-merchants in Chicago, drew a bill of exchange on Henry Ames & Co. for $8,125, representing the cost of pork they had purchased on behalf of Ames & Co. Scudder, a member of the firm, was present in Chicago and verbally authorized the drawing of the draft. The bank discounted the bill based on the representation that Scudder had authorized it, but later, Ames & Co. did not pay the bill, leading to this legal action.

That Leland & Harbach, on the same day, shipped the pork to Ames & Co. at St. Louis, Mo., who received and sold it; and that, at the time the bill was drawn, Scudder, who was then present in the office of Leland & Harbach, consented to the receipt of said pork, and verbally authorized them to draw on Ames & Co. for the amount due therefor.

Issue

The main legal issue was whether Scudder's verbal authorization constituted a valid acceptance of the bill of exchange under Illinois law.

The real issue in this case is, whether Mr. Scudder authorized the drawing of the draft in question, and expressly or impliedly promised to pay it.

Rule

In Illinois, a parol acceptance of a bill of exchange is valid, and a parol promise to accept it is considered an acceptance. The law of the place where the contract is made governs its execution and validity.

In Illinois, a parol acceptance of a bill of exchange is valid, and a parol promise to accept it is an acceptance thereof.

Analysis

The court analyzed the facts and determined that Scudder's presence and lack of objection to the statements made by Leland & Harbach indicated his implied acceptance of the bill. The court emphasized that the acceptance was valid under Illinois law, which does not require a written acceptance unless specified by statute. The jury was instructed to consider Scudder's acquiescence as evidence of an implied promise to pay the draft.

If you find from the evidence that Mr. Scudder, one of the defendants, authorized the drawing of the draft in question, and authorized the clerk, George H. Harbach, to so state to the vice-president of the bank, and that the said draft was discounted by the bank upon the faith of such statement, such conduct on the part of Mr. Scudder may be considered by you as evidence of an implied promise by the defendants to pay the draft.

Conclusion

The court affirmed the jury's verdict in favor of the bank, concluding that Scudder's actions constituted a valid acceptance of the bill of exchange.

The judgment must be affirmed.

Who won?

The Union National Bank prevailed in the case because the court found that Scudder's verbal authorization and subsequent actions implied an acceptance of the bill, making him liable for its payment.

The jury found a verdict in favor of the bank; and the court, overruling a motion for a new trial, rendered judgment.

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