A promissory note payable to order or bearer passes by indorsement, and although a chose in action, the holder may bring suit on it in his own name. Although a simple contract, a sufficient consideration is implied from the nature of the instrument. See 5 Com. Dig. 133, n., 151, 472 ; 4 B. & C. 235; 1 C. & M. 16. It has been urged that, upon principle, negotiable instruments are con tracts binding by their own force, and there fore not requiring any consideration ; Langd. Contr. § 49. When the baCk of a note is covered by various indorsements, an assign ment of the note, written on a piece of pa per pasted to the note, will pass the legal title.
By the Negotiable Instruments Act, one who puts his name on the back of an instru ment prior to or at the time of delivery be comes an endorser ; Rockfield v. Bank, 77 Ohio, 311, 83 N. E. 392, 14 L. R. A. (N. S.) 842 ; peahy v. Choquet, 28 R. I. 338, 67 Atl. 421, 14 L. R. A. (N. S.) 847. • See INDORSEMENT ; ALLONOE.
A negotiable instrument payable to bearer, by custom of trade, passes from hand to hand by delivery, and the holder for the time being, if he is a bona fide holder for value without notice, has a good title, not withstanding any defect in title in the per son from whom he took it; [1891] 1 Ch. 270.
As to whether a stipulation in an instru ment, otherwise in the form of a promis sory note, for the payment of an attorney's fee for the collection of the note in case of dishonor renders the instrument non-nego tiable, see BiLts or EXCHANGE.
A promissory note on the face of which, across one end, is written an agreement that the note will be renewed at maturity, is not negotiable ; Citizens N. Bk. v. Piollet, 126 Pa. 194, 17 Atl. 603, 4 L. R. A. 190, 12 Am. St. Rep. 860; nor is one indorsed "with out recourse"; De Hass v. Roberts, 59 Fed. 853.
A. promissory note- does not discharge the debt for which it is given unless such be the agreement of parties; it only oper ates to extend the period for the payment of the debt ; Segrist v. Crabtree, 131 U. S. 287, 9 Sup. Ct. 687, 33 L. Ed. 125.