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    Goodman Vs Gaul

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    Bianca Deslate
    Gaul indorsed a promissory note made by Bean and payable to Goodman. Goodman is now seeking to recover the amount of the note from Gaul. The court held that Gaul indorsed the note as an accommodation for Goodman, the payee. As an accommodation party for the payee, Gaul cannot be enforced to pay the note by Goodman. It was found that Gaul signed the note as a gratuity for Goodman after the note had already been delivered from Bean to Goodman.

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    Goodman Vs Gaul

    Uploaded by

    Bianca Deslate
    35 views1 page
    Gaul indorsed a promissory note made by Bean and payable to Goodman. Goodman is now seeking to recover the amount of the note from Gaul. The court held that Gaul indorsed the note as an accommodation for Goodman, the payee. As an accommodation party for the payee, Gaul cannot be enforced to pay the note by Goodman. It was found that Gaul signed the note as a gratuity for Goodman after the note had already been delivered from Bean to Goodman.

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    Original Title

    Goodman vs Gaul

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    Gaul indorsed a promissory note made by Bean and payable to Goodman. Goodman is now seeking to recover the amount of the note from Gaul. The court held that Gaul indorsed the note as an accommodation for Goodman, the payee. As an accommodation party for the payee, Gaul cannot be enforced to pay the note by Goodman. It was found that Gaul signed the note as a gratuity for Goodman after the note had already been delivered from Bean to Goodman.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views1 page

    Goodman Vs Gaul

    Uploaded by

    Bianca Deslate
    Gaul indorsed a promissory note made by Bean and payable to Goodman. Goodman is now seeking to recover the amount of the note from Gaul. The court held that Gaul indorsed the note as an accommodation for Goodman, the payee. As an accommodation party for the payee, Gaul cannot be enforced to pay the note by Goodman. It was found that Gaul signed the note as a gratuity for Goodman after the note had already been delivered from Bean to Goodman.

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    © All Rights Reserved
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    Goodman vs.

    Gaul
    Doctrine: A party for whose accommodation a note is given cannot enforce it
    against the accommodator.
    Facts:
    Gaul is the indorser of a promissory note. Goodman is the payee of the note.
    Bean is the maker. Goodman seeks to recover the amount of the promissory
    note from Gaul.
    Bean handed the note to Goodman. Goodman asked Gaul to indorse it. Gaul
    indorsed it without any qualification.
    It is contended that Gaul indorsed for the accommodation of Goodman, and is
    liable to holders in due course subsequent to the payee.
    Issue:
    WON Gaul was an accommodation party (YES, an accommodation party for
    Goodman. Therefore Goodman cannot enforce the note against him as
    accommodator.)
    Held:
    It does not appear that maker (Bean) solicited Gauls indorsement, or had
    authorized the payee (Goodman) to obtain it, or that it was understood
    between the maker and the payee that the note was not to become a
    completed instrument until the Gauls indorsement was obtained.
    The signing and delivery of the note by the maker to the payee made the
    payee (Goodman) the holder who could pass title.A negotiable instrument
    payable to a named payee is negotiated when the physical possession of it is
    handed for value to the person named as payee.
    Gaul signed for the accommodation of the payee (Goodman), and the
    party for whose accommodation a note is given cannot enforce it
    against the accommodator. It is a mere gratuity.
    The fact that the indorsement was made after the note had been negotiated
    does not aid the Goodman, who as between himself and the defendant (Gaul)
    is not a subsequent holder in due course.
    Gauls indorsement cannot be considered as a written guaranty absent
    express stipulations and circumstances showing that he actually undertook to
    guarantee the payment of the note. A person placing his signature upon an
    instrument otherwise than as maker, drawer, or acceptor is deemed to be an
    indorser, unless he clearly indicates by appropriate words his intention to be
    bound in some other capacity.

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