30 BULLETIN 1106, U. S. DEPARTMENT OE AGRICULTURE. 



If the defendants be regarded as strangers to the contract of sale between the 

 fruit union and plaintiff, as contended by defendants, the complaint is still 

 sufficient as to the defendant growers under the rule that where a stranger 

 wrongfully induces another to commit a breach of contract, or intentionally 

 disables such other from discharging the obligations of his contract, the wrong- 

 doer is liable in damages, or in a proper case may be enjoined from carrying 

 out his wrongful purposes. 



PROMISSORY NOTES. 



It is a practice more or less followed by nonstock cooperative asso- 

 ciations to receive the notes of their members for specified amounts 

 for the purpose of using them as collateral for loans that may be 

 necessary in the conduct of the association's business and for other 

 purposes. The exact character of such notes depends upon the terms 

 and conditions under which they are given and, of course, upon the 

 law of the particular State. The by-laws of an association usually set 

 forth the agreement between the association and the members rela- 

 tive to the notes, and this agreement would probably in all cases de- 

 termine the character of the notes as between the association and a 

 member and whether the association could successfully sue a mem- 

 ber on such a note. However, this would not necessarily be true, as 

 will be shown later, as between a third person who had received the 

 note of a member from the association. 



If the notes executed by the members of an association and deliv- 

 ered to it are accommodation notes — that is, notes executed without 

 consideration and for the purpose of enabling the association to bor- 

 row money or obtain credit thereon — then it is settled that the asso- 

 ciation could not successfully sue a member on such a note. The 

 maker of an accommodation note is known as the accommodation 

 maker. He receives nothing for executing the note and signs it to 

 enable the one in whose favor it is drawn to obtain money or credit 

 from some third party. The fact that a note or other negotiable in- 

 strument, no matter what its character, was executed without consid- 

 eration can always be shown as between the original parties. It fur- 

 nishes the maker with a complete defense as against the original 

 payee. 



If a negotiable note, whether accommodation or otherwise, has 

 been sold, delivered, or transferred before due to a third person 

 in good faith and without notice and for a valuable consideration, 

 the note is enforceable against the maker without reference to inter- 

 vening equities. This rule is settled.^ However, where an accom- 

 modation note is delivered after it is due, although transferred in 

 good faith to a third person and for a valuable consideration, the 



^5 National Bank of Commerce v. Sancho Packing Co., 186 Fed. 257. 



