p. 363ney for the defendants, under seal, reciting the registry, and containing a covenant to warrant the title to the ship. The plaintiffs then read, in evidence, a bill of sale, executed by John H. Howland and Caleb Barstow, of the brig Emma, to the defendants, dated the 16lh day of December, 1818.
John H. Howland,
a witness for the plaintiffs, testified, that, at the time of the sale, he and bis partner held the brig Emma, which was registered in their names, and had been conveyed to them by the plaintiffs, as surety, for advances made by the plaintiffs, but which the plaintiffs repaid them ¿ that, by the plaintiffs’ direction, about the 15th of December, 1818, they transferred the brig to the defendants, by the above mentioned bill of sale.
David S. Squire further testified,
that the actual exchange of the vessels did not take place till the 15th December, by reason of a storm which intervened, and drove the Em ma from her moorings ; that Noah Talcott gave three notes of his house, N. & D. Talcott, amounting to $6200, there being some arrangement made as to the $300, the residue of the sum agreed to be given on the exchange. The plaintiffs then produced the notes, which are in these words:“ Four months after date, we promise to pay Messrs, William & Charles Porter, or order, two thousand one hundred and sixty-six dollars //*, value received. New- York, 15th Deer. 1818.“ Four months after date, we promise to pay Messrs.William & Charles Porter, or order, two thousand one hundred and sixty-six dollars and //*, value received. New-York, 15th Deer. 1818,New-York, Deer. 14th, 1818.Ninety days after date, we promise to pay Mr. Noah Brown, or order, eighteen hundred and sixty-six dollars /*!., value received.(Indorsed,) Noah Broten.”
p. 364Henry Post, cashier of Franklin Bank,
called by the plain-prove(j? that the largest notes were discounted, for . the accommodation of the plaintiffs, at that bank; were protested for non-payment; and, by direction of Noah Brown, (who had indorsed them) were, when due, charged to his account, and, some days afterwards, delivered to him.Noah Brown, a witness for the plaintiffs,
proved, that the three notes were indorsed by him, at the plaintiffs’ request, and discounted at the Franklin. Bank, and taken up by him when due, N. D. Talcott stopping payment before they became due; and that, within three or four months after-wards, he settled with the plaintiffs, and delivered up to them the notes.John H. Howland, a witness for the defendants,
testified, that Messrs. Porters had paid all that they owed him, and redeemed the Emma.Noah Talcott, the above witness,
being called by the defendants, and further examined, stated, that he made the bargain or contract, with the plaintiffs, for the exchange of the vessels, both of which were then in the port of New-York, the ■ Vigilant being consigned to him by the defendants ; that he fully informed the plaintiffs, that the Vigilant belonged to Talcott & Bowers, the defendants, on whose account he acted, and that the Emma was to be conveyed or transferred to them. The agreement was finally concluded on Saturday, the 5th of December, 1818, and was, that the plaintiffs should transfer to the defendants the brig Emma, and the witness, as attorney of the defendants, should transfer to the plaintiffs the ship Vigilant, in exchange, and that N. & D. Talcott should pay to the plaintiffs, for the difference in value be- ■ tween the two vessels, $6500, in the notes of N. & D. Talcott, payable at from six to eight months, in three equal payments ; that the plaintiffs, at first, wished a shorter credit, which the witness refused: they also wished him to give an indorsement on the notes, which he also refused : it was a matter of negotiation between them'—he wishing to obtain as long a credit as he could, and they endeavouring to obtain a shorter one ; that it was clearly and distinctly understood between him and the plaintiffs, that the witness was
p. 365to give the notes of his house, JV. & D. Talcott, for the $6500 ; that the credits were to be in three equal payments, at four, six, and eight months ; that the payment was to be made by the witness’ house, and that nothing was said, nor any intimation made, directly or indirectly, during the negotiation, that the defendants were to be, in any wise, liable for the payment of the difference, or sum of $6500, or any part thereof ; that this agreement was made on Saturday, the 5th day of December, and the vessels were to be reciprocally delivered on the Monday following. The ‘plaintiffs suggesting, that they wished paper at a shorter credit, which might he discounted at the bank, the witness agreed that he would give his notes at a shorter credit, if desired, upon the understanding that the plaintiffs should provide for the same, until the expiration of the respective credits stipulated by the bargain, which the plaintiffs, agreed to ; that a storm occurred on the Saturday following, which drove the Emma from her moorings, and it being apprehended, she might have sustained damage, the final execution of the bargain was postponed to the 15th of December, when the vessels were respectively transferred and delivered ; the witness, as attorney of the defendants, executed the bill of sale of the Vigilant, and delivered her to the plaintiffs, and John H. Howland, by the plaintiffs’ direction, executed the bill of sale to the defendants, of the Emma, and delivered her to the witness, as agent of the defendants ; that agreeably "to the understanding and arrangement, the plaintiffs, on the day of the delivery of the vessels, requested of the witness two notes, each for $2166,66, payable to themselves respectively, at four months, which he drew and gave them, being the two notes first above set forth, and shortly afterwards they obtained from him another note, pay able at ninety days, in favour of Noah Brown, which he also gave for $1866,67 ; that, at the time of the exchange, he opened an account in his books with the plaintiffs, in which he gave them credit for the difference of $6500, and charged them with the notes, so that as the notes were less than the amount of the credit by $300, that balance appeared due them on the acc ount; but it was distinctly under-
p. 366S^00C* between him and the plaintiffs, that although he varied * the amount and times of payment in the notes given, yet, the same being for their accommodation, they were to be renewed and kept running in such manner as to leave him to pay the amounts stipulated, at the times they would respectively become due, according to the agreement on the exchange of the vessels ; that he also, on the same 15th day of December, 1818, charged the defendants in his account with them, with the $6500, and advised them of his having made the exchange, and the charge against them of the sum in his accounts ; that on the 31st day of December, 1818, he made up and transmitted to the defendants, his account current with them, including the charge, in which the balance, after crediting himself with the charge due on account, was upwards of $7000 ; that the 'house of Talcott Bowers, at the time of the exchange, had a balance in hands, his exceeding $13000; that they had been many years established as a mercantile house in New-Orleans, and he had been, and at the time in question, was their factor or general agent, in relation to commercial concerns in the city of Ncw-York ; that they were in the habit of making him consignments to large amounts, and drawing upon him and directing investments and remittances to be made, which transactions involved an account of several hundred thousand dollars ; that he had desired the. defendants to keep in his hands as large a balance as they could conveniently, for the purpose of affording him. facilities in business ; that he had never requested them to make remittances, or otherwise furnish him with funds, to. meet the payment of the notes he had given the plaintiffs, or providing for the payment of the difference; that he had such funds in his hands at the time of the bargain and exchange; that he had no recollection whatever, that he had ever expressed to the plaintiffs an expectation that funds would be sent him by the defendants, to provide for the payment of the difference, or that any thing of the kind was mentioned, when the bargain for the exchange of vessels took place; such a thing might have possibly been mentioned, but he had no recollection, of it-j^ that he was posi
p. 367iive> that no such expectation was mentioned or expressed, asan inducement to, or ground upon, which the contract was made ; that he had not suspended payment at that time, but gave the notes and made the agreement under a full expectation of paying, and of being able to pay the agreement he entered into in that respect, as the monies would become due ; that he found it necessary to suspend payment in the beginning of March ensuing ; that on the 80th day of February, ensuing the contract, finding his affairs pressing, he advised with two or three friends, who agreed to give, him some aid, and he then expected to be able to go on and meet his engagements; but circumstances proving unfavourable, he finally, in the beginning of March, found it necessary to stop payment.John H. Howland,
being further examined by the plaintiffs, stated, that before the agreement for the exchange was made, the plaintiffs spoke to him, on the subject of taking N. & D. Talcott'1 s note for the difference ; that the pub-lick opinion of N. D. TalcoWs solidity was various ; and the witness himself, from what he understood, would not have taken their notes ; and he so mentioned to the plaintiffs, before they made the agreement for the exchange of vessels, when they began to treat on the subject, and told them that he himself, would not take their notes without security. And he refused to take them for the demand due him from the plaintiff’s, and they made arrangements and paid him otherwise.
Upon this evidence, the defendants’ counsel moved for a nonsuit, but his honour reserved the questions of law, arising on the case, and, by assent of counsel on both sides, directed the jury to find a verdict for the plaintiffs, subject to all questions of law, to be reserved for the decision of the Court; and further, to find specially, whether there was any agreement, that the plaintiffs should give entire and exclusive credit to Noah Talcott, the agent, or whether the credit was given to the defendants as principals, or whether there was any agreement what
p. 379due. If the hill be not given, the plaintiff may bring an action • , , , ’ r, ,, • , f ,v on the special contract; but alter the expiration ol the period of credit, it was no use to give the bill, for the party is then entitled to receive his money. Heath, Justice, observed, that he had always understood, that when a contract is executory, the party must declare specially; but that when it is executed, he may declare generally. Rooke, Justice, took this distinction, as found in all the cases, that the plaintiff can only recover upon a special action, until the time of credit has expired. In the present case, the plaintiff had fully performed, by conveying and delivering his vessel; the payment of $6500, which the plaintiff was to receive, in addition to the transfer of the defendants’ vessel, alone remained to be performed: it was agreed to receivejthe notes of Noah Talcott, the agent; they were given, and this action was not commenced until after the time of credit had expired. If the defendants are liable for this demand, it seems to me, the general count is supported by the proof given at the trial. (2 Chitty, 84, note (e.) Mussen v. Price, (4 East, 147.) But if this were otherwise, I think the count on the special agreement is substantially correct. The objection is, that no notice is taken of the agreement, to accept .Noah Talcott''s notes, nor are the times set forth, when they became payable. The same principle that will authorize a party to declare generally, after the money is due, will, I apprehend, allow him in declaring on, the special agreement, to aver the non-payment of the money generally, without going into a particular statement of the manner and periods of payment. As to the manner of securing the , money, there could be no breach as to that, for the notes were given as stipulated ; and the money having become due, why should a particular statement in the declaration be necessary ? If there had been a refusal to give the notes, or a prosecution been commenced, when a part only of the money was due, the count would have been defective ; it' would then not correspond with the proof. The case, as now presented, is very different; every thing has been performed, except payment of the money, to be given on the' exchange. I fully concur in what was said by Chambre, Jus
p. 380tice, in
Brooks v.
White, that the qualifications respecting ' the mode of payment, are introduced for the benefit of the purchaser, and during the time to which they relate, the seller must sue on a special contract; when that time is expired, the money is actually due. The plaintiff has set out all the contract, that remains to be performed, and that is enough to entitle him to recover. In
Clark v.
Gray & others, (6
East, 564,)
Ld. Elhnborough, who delivered the judgment of the Court, observes, that it is sufficient to state, in the declaration, so much of any contract, consisting of several distinct parts and collateral provisions, as contains the éntire consideration for the act, and the entire act, which is to be done in virtue of such consideration ; and that the rest of the contract, which only respects the liquidation of damages, after a right to them has accrued, by a breach of the contract, is matter proper to be given in evidence to the jury, but not necessary to be shewn to the Court in the first instance, on the face of the record. The principle here stated will uphold the special count; for the transfer of the plaintiffs’ vessel, is the entire consideration for the act, and the non-payment of $6500 is the entire act to be done in virtue of such consideration. There is, then, no material variance. This objection cannot prevail. But it is contended that the plaintiffs elected to take
Noah Tal~ cott, the agent, as their debtor, and cannot afterwards charge the principals.
The plaintiffs treated with Talcolt, as the agent of the defendants, and agreed to take his notes. The jury have found that there is no evidence of any agreement, or mutual understanding, that the defendants were, or were not, bound to the plaintiffs for the amount of the notes. I think this finding warranted by the evidence. The question then is, whether on these facts the defendants are liable. The law js well settled, that a note given by the debtor fora precedent debt, is no payment of the original demand, unless it, is expressly agreed to receive it in payment. ( 5 John. 68 . 7 John. 311 . 2 John. 455 .) It is here contended, that the plaintiffs have elected to take Noah TalcotPs notes, and thereby exonerated the defendants, The ca¡5,e °f Johnson v.
p. 381Weed, ( 9
John. 310 ) is not an authority to prove, that a promissory note of a third person, for goods sold and delivered, is no payment, unless the vendor agrees to take it actually as such, because, it is evident in that case, the plaintiff did not intend to take
Townsend’s note at his own risk. In
Whit-heck v.
Van Ness, ( 11
John. 409 ,) on a review of all the cases, this doctrine seems to be settled, that if the vendor of goods receive from the purchaser the note of a third person, (the note not being forged, and there being no fraud or misrepresentation) such note will be deemed to have been accepted by the vendor in payment, unless the contrary be expressly proved. The inquiry then is, whether
Noah Tal
eott is to be considered in the light of a third person, within the meaning of the rule ? he was an agent merely, and represented the defendants. In the case of
Everett v.
Collins, (2 Campb. 515,) it was held, that if a creditor prefer a bill of exchange, accepted by a stranger, to cash, he must abide the hazard of the security lie takes. In that case, the agents of the defendant, who was the debtor, gave their check to the plaintiff, which was dishonoured; it was held that the debtor was not discharged.
Lord Ellenborough observed, the agents are not to be considered in the light of third persons, but as the defendant’s servants. So here, the note of
Talcott, then, is not the note of a third person, nor does it operate as payment, unless so agreed. It was supposed that the plaintiffs had elected to take
N. Talcott. The case of
Patterson v.
Gandasequi, (15
East, 62) was cited on the argument. It undoubtedly proves, that if the seller elect to give credit to the agent, he cannot afterwards resort to the principal. It is stated in that case, as a fact,
that the goods were sold on the credit of the agents. It is not so stated in the present case.
I am on the whole of opinion, that, as Talcott was merely an agent, and as there does not appear to have been any agreement not to look to the defendants, they are liable. This view renders it unnecessary to consider the application for a new trial, on the ground of newly discovered testimony. I will only observe, that if the plaintiffs’ evidence was insufficient, the applicaion for a new trial ought to be gran
p. 382ted, on the ground that there has been reasonable diligence, qle new evidence is material, that it has been discovered since the trial, and is not cumulative. If true, it proves an important fact, decisive of the controversy, and not made out at the trial. Neither is it to contradict the testimony of
N. Talcott; for he does not say, that he had never expressed to the plaintiffs an expectation that funds would be sent by the defendants, but that he has no recollection of that fact. The newly discovered evidence, therefore, would establish a fact, respecting which, Mr.
Talcott has no recollection, There must be judgment for the plaintiffs.
This is an action brought by the plaintiffs, to recover the difference agreed to be paid on an exchange of vessels, made on the 5th day of December, 1813. The exchange was made, on the part of the defendants, by Noah Talcott, whose authority is not questioned. The difference agreed to be paid to the plaintiffs was $6500, for which amount they took the notes of Noah Talcott 4r Co. which, having been dishonoured, in consequence of their failure, this suit has been brought against the defendants. The only question, upon the merits of the case, is, whether it was a part of the contract of exchange, that the notes of Noah Talcott &/• Co. should be taken, by the plaintiffs, -in payment or satisfaction of the difference agreed to be given, If it was, and if they were so received, then the plaintiffs have precluded themselves from the right of resorting to the defendants, which they otherwise would, unquestoinably, have possessed.
The jury, under the direction of the Judge, found specially upon this point, “ that, in the contract for ex- “ change of vessels, it was agreed, that the notes of N. & “ D. Talcott should be given for the difference ; that, at the “ time of making the agreement, it was expressly declared, “ by Noah Talcott, that he was acting as the authorized agent “ of Talcott & Bowers, of New-Orleans ; but that there is no u evidence of any agreement, or mutual understanding, that “ the said Talcott &c Bowers were or were not bound, to the “ plaintiffs, for the amount of the notes of N. & D. Talcott, vi in the event of their insolvency and this finding of the
p. 383iürv is perfectly justified by the evidence, as stated in the ' J 1
J J case.
The case, then, stands thus t Noah Talcott, acting avowedly as the agent of the defendants, makes the exchange of vessels for them, andgives the notes of his house for the difference. Does the transaction carry upon the face of it the requisite legal evidence cf an agreement, on the part of the plaintiffs, to take those notes, as payment, without the right of eventual recourse to the defendants ? I am clearly of opinion that it does not, within the reason or authority of the adjudged cases.
A distinction is sometimes taken upon this subject, which requires to be a little considered. It is this : that the note of a third person, if taken at the time of making the contract, is payment; but, if given for an antecedent debt, it is not. Now I apprehend, that it is payment in neither case, unless it •is agreed to he so taken ; and, if so agreed, it is equally payment when taken for an antecedent debt, as when taken for a debt contemporaneous with the agreement. In either case, the enquiry is the same—did the creditor agree to take it as payment ? and so are all the cases. In Clerk v. Mundall, (12 Mod. Rep. 203) Lord Holt says, “If A sell goods to B, and B take a bill, in satisfaction thereof, there, though the bill be never paid, A is discharged; 6c- cause it is part of his contract, that 3 should take the bill. So, in Ward v. Evans, (2 Ld. Raym. 930) Lord Holt again says, “ The taking a note, for goods sold, is a payment, because ■it was part of the original contract.” The case of Owenson v. Morse, (7 T. R. 64) turns upon this very point, and the language of Lord Kenyon, there, is very clear and explicit»It was an action of trover, for some articles of plate, purchased by the plaintiff of the defendant, and two questions' were made : 1. Whether the plate had been delivered to the plaintiff: and 2. Whether he had paid for it. In either case, it was admitted, he could sustain the action. The facts, in relation to the payment, 'were these: The plaintiff, at the time of the agreement, paid the price of the goods, in the notes of the Mcssi-s. Shaws, who kept a bank at Southampton. They failed, before the goods were sent home, and the de
p. 384^en^an* refused to deliver them. Lord
Kenyon says, “ If the? defendant had
agreed to take the notes,
as payment, and to
run the risk of their being paid, that would have been considered as payment, whether the notes had or had not been afterwards paid ; and that is all that is proved, by the cases that have been cited.
But, without such agreement, the giv~ ing of such notes is no payment.”
The case of Johnson v. Weed & another, in this Court# ( 9 John. 310 ) is precisely in point. Johnson sold the defendants goods, for which he agreed to take the note of John Townsend, which was delivered to him. Townsend failed, before the note fell due, and the plaintiff brought his action against the defendants, for goods sold and delivered.— Chief Justice Kent, before whom the cause was tried, charged the jury, “ that, unless the plaintiff agreed to receive the note as payment, and to run the risk of its being paid, the. mere taking of the note would not amount to a payment, if it turned out to be of no value; and that, whether the plaintiff did or did not take the note in question, under such an agreement, was a matter of fact, for the jury to find.” This was not the case of an antecedent debt. The note was actu- . ally taken, by the plaintiff, at the time of making the contract for the goods. But that was not considered sufficient evidence of an agreement, on the part of the plaintiff, to take the note in payment; and the jury found that it was not so taken. The • Court, in giving their judgment, say “If it was a part of the original agreement, between the “ parties, that the plaintiff should take Townsend’s note, in “ full satisfaction of the goods sold, so that he, and not the “ defendant, should run the risk of the note, then, undoubt- “ edly, the plaintiff has no right of action. But the fact, “ whether such was or was not the agreement, was submitted “to the jury, and they have decided in favour of the plain- “ tiff. The books all agree, that there must be a clear and “ special agreement, that the vendor shall tajee the' pa- “ per, absolutely, as payment, or it will be no payment, if it “ turns out to be of no value.”
The cases of Murray v. Gouverneur & others, (2 John. Cas. 438) of Herring v. Sanger, (3 John. Cas. 71) of Tobey
p. 385v.
Barber, ( 5
John. Rep. 68 ) of
Schermerhorn v.
Loines &
others, ( 7 John. Rep. 311 ) are all cases of
antecedent debts, in relation to which there is no doubt of the rule. And, if what is said by Lord
Kenyon, in
Owenson v.
Morse, and by this Court, in
Johnson v.
Weed &
others, be law, it is equally clear that the note of a third person, though taken at the time of making the contract, is no payment,
unless it zeas expressly agreed to be received in satisfaction, as payment. The finding of the jury, in this case, establishes the fact, that there was no agreement, or mutual understanding, between the parties, that the notes of
N. Sz D. Talcott should be
taken in payment of the difference. It was a part of the contract, that they should give their notes, but that is not sufficient, unless they were to be given in
payment or satisfaction.In Whitlock v. Van Ness, ( 11 John. 409 ) there was no doubt, that it was the intention of the parties, that the vendor should take the note of Dean, at his own risk, and that such was the agreement; and that it was perfectly understood that the vendee was not to be responsible, in any event. The proposition of the vendee was to buy the horse, if the vendor would take Dean’s note for hint, to which he assented. And Spencer, Justice, in delivering the opinion of the Court, puts it upon that ground. He says, “ The single point for our determination, in this case, is, whether the note of a third person, agreed to be taken in payment for goods sold at the same time, is taken at the risk of the vendor of the goods, or of the vendee.” If agreed to be taken in payment, it undoubtedly is payment; and that, in every case, whether of an antecedent debt or of a debt contracted at the time of giving the note, is the true and only point of inquiry.
But, in this case, the notes given were not, in strictness, the notes of a third person. They were the notes of the defendants’ agent, avowedly dealing for them, within the limits of his authority. In such a case, the proof of the notes having been taken in payment, ought to be more clear and explicit than though they had been the notes of a stranger ; for the acts of an agent, when dealing for his principal,
p. 386and within the scope of his powers, are, in judgment of law, acts of the principal.
(Everett v.
Collins, 2 Campb. 515.)
I am, accordingly, of opinion, upon the merits of the case, that the plaintiffs are entitled to recover. It is not necessary to consider the objections taken to the special counts in the declaration, on the ground of variance between the contract, as stated and proved : for there is no doubt, that where there has been a special agreement, the terms of which have been performed, so that nothing remains but a mere duty to pay money, the money may be recovered under a count in general indebitatus assumpsit, with-out stating the special agreement. (Mussen v. Price, 4 East, 147. Poulter v. Killingbeck, 1 Bos. & Pull. 397., Gordon v. Martin, Fitzg. Rep. 302, S. C. Bull. N. P. 139. Kelly v. Firlee, 1 Binney’s Rep. 4. Miles v. Moodie, 3 Serg. & Rawle’s Rep. 211. Felton v. Dickenson, 10 Mass. Rep. 287 .) In this case, the vessels had been delivered, and every part of the agreement xvas executed, except the payment of the money given as the difference. And the cases cited shew that this may well be recovered under a general count.
Upon the whole case, therefore, I am of opinion, that the plaintiffs are entitled to judgment, which renders it unnecessary to consider their application for a new trial..
Savage, Ch. J. concurred.
Judgment for the plaintiffs,