Sec 950

When a payment is made bona fide to one of several joint creditors, this bars the debt so far as concerns all.10 If, however, the debtor knew that the creditor had no authority to receive the payment, or that the payment was irregular and improper, as where a debt due a partnership is paid by fraudulently setting off a separate debt of one of the partners, the payment, as against the other creditors, will be invalid.1

Payment by one joint debtor discharges the other.

Payment to one joint creditor releases debt.

1 Leake, 2d ed. 907; citing Elliott V. Merryman, 1 Wh. & T. Lead. Ca. 58.

2 Ibid.; Carlyon V. Trescott, L. R. 20 Eq. 348.

3 23 and 24 Vict. c. 145.

4 Supra, sec 831 et seq.; Leake, 2d ed. 906; Beaumont V. Greathead, 2 C. B. 494; Thorne V. Smith, 10 C. B. 659. As to liability of joint debtors generally, see supra, sec 824 et seq.

5 Bottomley V. Nuttall, 5 C. B. N. S. 122; Keay V. Fenwick, L. R. 1 C. P. D. 745.

6 Petty V. Cooke, L. R. 6 Q. B. 790.

7 Walters V. Smith, 2 B. & Ad. 889; Field V. Robins, 8 A. & E. 90.

8 Lyth V. Ault, 7 Exch. 669; Hart V. Alexander, 2 M. & W. 484; overruling Lodge V. Dicas, 3 B. & Ald. 611. And see Harris V. Lindsay, 4 Wash. C. C. 98; Chase V. Vaughan, 30 Me. 412; Arnold V. Camp, 12 Johns. 409; Smith V. Rogers, 17 Johns. 340; Kean V. Dufresne, 3 S. & R. 233; Bernard P. Torrence, 5 Gill & J. 383.

9 See Waydell V. Lner, 3 Denio, 410; and cases cited above.

10 Supra, sec 814 et seq.; Wallace V.

Sec 951

When money is deposited in bank in the joint name of two or more parties, it is in trust for the use of all, and can only be withdrawn on the joint order of all the depositors.2 sec 952. The purchase of a debt by a stranger is ordinarily for the purpose of taking an assignment of the debt. The debt remains in full force, the original creditor either holding it to the use of the purchaser, or passing to the purchaser the legal as well as the equitable title.3 Hence, a receipt from a third party of a debt written on a bill of exchange, is no proof of payment, since the price may have been given, not in discharge of the bill, but for the purchase.4 As has been already seen, an assignee, by modern practice, can sue in his own name;5 though the debtor's assent is necessary to constitute a new contractual relation,6 and the assignment is subject to prior equities between assignor and debtor.7