Woodbury v. Roberts

• Decision Date: 21 September 1882
• Citation: 13 N.W. 312,59 Iowa 348
• Parties: WOODBURY, WILLIAMS & ENGLISH v. ROBERTS
• Court: Iowa Supreme Court

13 N.W. 312

59 Iowa 348

WOODBURY, WILLIAMS & ENGLISH v. ROBERTS

Supreme Court of Iowa, Council Bluffs

September 21, 1882

Appeal from Des Moines Circuit Court.

ACTION upon a promissory note. The cause was submitted to the Circuit Court upon the question of the negotiability of the note, under a written stipulation of the attorneys of the parties, and the court decided that the instrument is not negotiable. Plaintiffs appeal.

AFFIRMED.

Newman & Hake, for appellants.

Whiffin & Brown, for appellee.

OPINION

BECK J.

The only question in the case involves the negotiability of the note in suit, of which the following is a copy:

"$ 300. DALLAS TOWNSHIP, IOWA, March 18, 1880.

"Three months after date, I promise to pay to the order of Warren Roberts three hundred dollars, at the First National Bank of Burlington, Iowa value received, with interest at ten per cent per annum, including attorney's fees and all costs of collection."

"The makers and endorsers of this obligation further expressly agree that the payee, or his assigns, may extend the time of payment thereof from time to time indefinitely as he or they may see fit." (Signed) "WARREN ROBERTS."

"Indorsed on the back, WARREN ROBERTS."

When an instrument is not certain, or is not capable of being made certain, as to the time of payment, the law does not regard it as negotiable paper. By the terms of the condition of the note in suit it would never fall due, but could be indefinitely extended at the will of the maker and indorser, who, it will be observed, is the same party. When the instrument was executed the time of its maturity was contingent upon the option of the maker of the note. It was impossible to determine when it would become due by the assent of the maker. The time of payment was uncertain and was not capable of being made certain. Nothing happened after its execution to remove this uncertainty.

Notes which by their terms are payable on or before a fixed time or a specified event, are, it is true, uncertain as to the time at which they are payable. But there is no uncertainty as to the time when they become absolutely due. Paper of this character is regarded by the courts as negotiable. But the note before us may never fall due, for payment may be extended indefinitely.

The rules applicable to commercial paper were transplanted into the common law from the law merchant. They had their origin in the customs and course...